V.V. IYER Vs. JASJIT SINGH

JUDGEMENT

(1.) THIS is an appeal against the judgment of Mr. Justice K.K. Desai of date March 29, 1962, dismissing the appellants Petition under Article 226 of the Constitution of India, wherein he had challenged the validity of the order dated May 25, 1960 made by the Collector of Customs, respondent (No. 1) hereto, imposing a penalty of Rs. 80,000 under the provisions of Section 167(8) of the Sea Customs Act against the firm of M/s. New India Corporation, wherein the appellant was, at the material time, a partner. Facts giving rise to this appeal in brief are:

(2.) AT the material time the appellant was a partner in a partnership concern doing business under the name and style of M/s. New India Corporation, Bombay. The firm, inter alia, was doing the business of importing plantation machinery, agricultural machinery, implements, accessories and component parts thereof. The firm was the sole agent for selling agricultural machinery and implements manufactured by a German concern Carl Platz.

(3.) NOW , the partnership firm was granted two import licences, one of date February 9, 1956 and the other of date March 16, 1956 to import certain articles. The copy of the import licence is not on record, but during the course of the argument, Mr. Advani showed us one of the unexhausted licences, and stated that the two licences were for the same purposes. The licence, if that be so, permits import subject to certain conditions mentioned therein of 'spare parts in power driven agricultural machinery (parts of sprayers)'. The firm placed an order sometime in August 1956 with the manufacturer Carl Platz of West Germany for sending to them 500 Express Battery Sprayers (containers) to be shipped in two or more lots to the firm, Carl Platz under their invoice No. 84141 of date October 28, 1956 purported to send: 220 'Express' Knspack liquid containers. Brass, for Patria Power Charging sprayers. Now, the invoice shows that 216 Express containers of higher weight were sent in 27 crates and 4 express sprayers of lower weight were sent in one crate. In all 220 Express Knspack liquid containers Were purported to have been sent under this invoice. These goods were shipped in November from Germany, and arrived in Bombay sometime in January. The Bill of Entry describes the contents of of these 28 crates as 'Spare Parts for power Agricultural Machinery.' On the arrival of the goods, the Bill of Entry was duly filed by the clearing agents of the firm in the Appraising Department of the Bombay Customs. The Appraiser of the Group concerned gave examination Order on January 7, 1957. A sample was seen by the Appraiser on January 10, 1957, and being of the view that the sample was in conformity with the Shippers' invoice, he completed the Bill of Entry and passed the consignment after accepting the import licence produced. The goods were thus cleared by the clearing agents and delivered to the firm.