PFAFF INDUSTRIAMASCHINEN MBH Vs. ADDITIONAL COLLECTOR OF CUSTOMS

JUDGEMENT

(1.) Petitioner is a Corporation incorporated in West Germany. It manufactures, inter alia, industrial Sewing Machines. The 1st petitioner has a manufacturing unit in Brazil. It has subsidiaries in other countries like Singapore, U.K. and U.SA The 2nd petitioner, at all material times, was the agent of the 1st petitioner. The 3rd petitioner is the Manager of the Bombay Branch of the 2nd petitioner.

(2.) The 1st petitioner received a purchase order dated 22.12.1984 from the 3rd respondent Adi Impex, Kutch, India through the 2nd petitioner for 100 Nos. Pfaff "Class: 463/01 BS High Speed flat bed lock-stitch industrial sewing machines complete with stand, table, treadle, motor and essential spare parts". During the relevant period under the Import Policy for the period 1984-85 these machies could be imported into India under Open General Licence by actual users. Thereafter respondent No. 3 opened a letter of credit in favour of the 1st petitioner dated 3.1.1985.

(3.) Under the letter of credit the shipment was to be effected not later than 28th February 1985. Letter of credit was valid for negotiation till 15th March, 1985.