PREMABHAI CHHIBABHAI TANGAL Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioner is the sole proprietor of Premabhai Chhibabhai Tangal & Co. He is also one of the shareholders of M/s. Indo-French Time Industries Ltd., Bombay, having only a shareholding of about 5% in the total authorised capital of the said Company (hereinafter referred to as "the said Indian Company"). He was also one of the Directors on the Board of Directors of the said Indian Company, which consisted of 12 Directors, during the relevant period of 24th May, 1966 to 17th June, 1974.

(2.) The petitioners had imported spare parts of watches from M/s. Sedim Establishment, Vaduz, Switzerland (hereinafter referred to as "the said Swiss Company"). The said Swiss Company has a sister concern by name of Sedim France (hereinafter referred to as "the said French Company"). There is collaboration between the said Indian Company and the said French Company since the year 1961 and under this agreement the said Indian Company manufactures watches in India in collaboration with the said French Company. The parts required for the manufacture of such watches are supplied by the said French Company to the said Indian Company. It appears that the watches and parts supplied by the said French Company are of a Company in France which manufactures watches and the parts, namely, Messrs. Lorsa, France (hereinafter referred to as "the said Lorsa"). The said Lorsa is one of the 7 members of a group of other Companies, who deal in the sale of retail spare parts of the watches (hereinafter referred to as "the Groupement").

(3.) The petitioner is an established importer of watches and watch spare parts recognised under the Imports and Exports (Control) Act, 1947 and the Imports (Control) Order, 1955, as he has imported watch parts totally aggregating to about Rs. 20 lakhs from the said Swiss Company from the year 1967. According to him, he had personally gone to Switzerland during May/July 1967 when the entire transaction was negotiated and finalised. As a result of these negotiations, the petitioner had agreed to import large quantities of watch parts from the said Swiss Company, which he has implemented and correspondingly the said Swiss Company has been giving to the petitioner a trade discount upto 50 per cent and more, in view of the large quantities which the petitioner has been purchasing and the length of time for which he has been purchasing. The petitioner says that thus the price offered by the said Swiss Company to the petitioner has always been very much competitive export price.