SATELLITE ENGINEERING LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) By this petition filed under Article 226 of the Constitution of India, a portion of the order passed by the Special Secretary to the Government of India in exercise of the revisional powers conferred under the provisions of the Customs Act on October 13/20, 1979 is challenged.

(2.) The facts which gave rise to the filing of this petition are required to be briefly stated. The petitioners are manufacturers of Fluorescent Starter Switches and for the purposes of manufacture required lead glass tubings. One Parmanand Maneklal & Company had business and technical collaboration with Messrs. Kupfer Limited, United Kingdom. On April 16, 1962, the petitioners got the business of Parmanand Maneklal & Company transferred to them and continued purchasing raw materials from M/s. Kupfer Limited. On January 17, 1972, the petitioners placed an order with M/s. Kupfer Limited for 30 tonnes of lead glass tubing. The first consignment of 164 cases arrived on March 11, 1973 and in respect of that consignment, the Collector of Customs, Bombay served show cause notice on July 7, 1973 upon the petitioners to show cause why the goods should not be confiscated on the ground of value mis-statement. The value mentioned in the bill of entry was Pounds 0.15 per kg. and the Collector felt that the price was absurdly low as the quotations received by the Customs authorities indicate the prevailing price of Pounds 0.430 per kg. The second consignment of 164 cases arrived in May 1973 and in respect of this consignment also a show cause notice was issued on July 7, 1973 as to why the goods should not be confiscated for mis-declaration of value. The third consignment of 164 cases containing 8,030 kgs. of lead glass tubing arrived in November 1973 and the Bill of Entry was filed by the petitioners on November 9, 1973 for 8,030 kgs. claiming value at Pounds 0.25 per kg. The show cause notice in respect of third consignment was served on the petitioners on November 19, 1973 for mis-declaration of value and also for mis-declaration of weight in the Bill of Entry as the goods imported were 10,037 kgs. instead of 8,030 kgs. as declared in the Bill of Entry.

(3.) In respect of the first two consignments, the Collector passed an order on August 7, 1973 confiscating the consignments under Section 111(m) of the Customs Act, 1962 with redemption fine of Rs. 54,500 in respect of each of the consignments. The order was passed by the Collector on the basis that the value of the lead glass tubing imported was found Pounds 0.430 per kg. and the price declared by the petitioners was wholly under-valued. In respect of the third consignment, the Collector passed an order on April 24, 1974 confiscating the consignment under Section 111(1) and (m) of the Customs Act with redemption fine of Rs. 33,000. The Collector also imposed a penalty of Rs. 27,000 and Rs. 1,000 under Sections 112 and 117 of the Customs Act respectively. The Collector in respect of the third consignment, came to the conclusion that the goods were under-valued and also there was a mis-declaration in respect of the weight.