CAWASJI BEHRAMJI & CO Vs. H N SAIFI

JUDGEMENT

(1.) This is a Petition filed by the Petitioners who are a Partnership Firm registered under the Indian Partnership Act, and carry on business for the past 25 years as Stevedores, Ship-Chandlers and Canteen suppliers to ships. They challenge inter alia the vires of the Public Notice No. 22 dated 27th February 1964, which imposes certain mandatory conditions before claiming exemption from liability to pay duty under Sections 13 and 23 of the Customs Act, 1962 (hereinafter referred to as "the said Act"). Several contentions have been taken in the Petition but I shall only deal with two of them which have been argued before me.

(2.) The short facts that are necessary for appreciation of this Petition, are that the Petitioners in the course of the business, import into India goods for re-export as ship stores or otherwise and as the goods which are so imported are meant for re-export they are exempted from duty under certain conditions. It is stated in the Petition that the Customs authorities follow two procedures for clearance of goods imported by the Petitioners, for the purpose of re-exporting the same as ship stores or otherwise. It is unnecessary to set out the two procedures mentioned in the Petition because in the present case the Court is concerned with the only question as to whether the conditions imposed upon the Petitioners in the Public Notice, dated 22nd February 1964, Exh. A, to the Petition, are valid and binding and even assuming the same to be valid, whether the Petitioners are bound to act upon those conditions mentioned therein. Relevant Sections of the Customs Act viz., Sections 12, 13 and 23 are set out below:

(3.) It is the case of the Petitioners that after the goods are imported the Petitioners are entitled to claim exemption from duty under Section 13 of the said Act, if any imported goods are pilfered after unloading thereof and before the proper officer has made an order for clearance for home consumption or deposit in a warehouse, the importer is then liable to pay duty leviable on such goods except where such goods are restored to the importer after pilferage. Similarly, an exemption has been granted under Section 23 of the said Act, where also if it is shown to the satisfaction of the Assistant Collector of Customs that any imported goods have been lost or destroyed at any time before clearance for home consumption, remission of duty is permitted but it must as stated above be so shown to the satisfaction of the Assistant Collector of Customs.