AHMEDABAD ADVANCE MILLS LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) The Petitioners are a Company registered under the Companies Act and are one of the pioneers in the manufacture of cold rolled high carbon and alloy steel and special steel strips in India. Under the provisions of the Import Trade Control Policy, the petitioners are entitled to import hot rolled stainless steel strips being the actual users. The import is canalised through the Mineral and Metals Trading Corporation Limited (hereinafter referred to as the "Corporation") which awards contracts for the raw material supply to the actual users on the basis of worldwide tenders floated by the Corporation.

(2.) The Joint Chief Controller of Imports and Exports had issued a release Order dated March 29, 1974 in favour of the petitioners whereby the petitioners were required to approach the Corporation for securing the allotment of 100 tonnes of hot rolled stainless steel strips in coils of C.I.F. value of Rs. 10,00,000/-. In pursuance of the aforesaid release order, the petitioners approached the Corporation and placed an order and the Corporation in its turn entered into a contract dated February 4, 1974 with the foreign suppliers. The size and specification of the goods to be supplied were as under :-

(3.) The goods under the contract arrived in two consignments under the invoices dated June 17, and June 18, 1974. The goods imported were described as "prime stainless steel hot rolled coils" admeasuring as specified in the contract. The petitioners filed two Bills of Entry on August 6, 1974 in respect of the goods imported. The Docks Shed Appraiser endorsed the bills with the remarks that the measurements of the thickness taken on one particular coil were 3.05 mm, 3.06 mm. and 3.04 mm. and, therefore, the duty payable is 200% ad valorem as per the Customs Tariff Item No. 63(20A) of the First Schedule to the Tariff Act, 1934.