LAWS(CAL)-1951-2-1

SOORAJMULL NAGARMULL Vs. ASST CONTROLLER OF CUSTOMS

Decided On February 16, 1951
SOORAJMULL NAGARMULL Appellant
V/S
ASST.CONTROLLER OF CUSTOMS Respondents

JUDGEMENT

(1.) This is an application under Article 226 of the Constitution and under Clauses 4 and 21 of the Charter for Writs in the nature of Mandamus, Prohibition and Certiorari and also under section 45 of the Specific Relief Act for a direction on the Respondents prohibiting them from exercising jurisdiction to call upon the production of an import licence other than the licence already produced and from taking steps in enforcing the bond dated the 28th of March 1950 or from recovering a sum of Rs. 4,65,473/12/- and also for a. direction for withdrawal of the illegal demand and for refund of a sum of Rs. 75,925,/14/- illegally realised by way of extra duty and for certain other directions.

(2.) On the 30th December 1949 the petitioner bought from Tiona Petroleum Co. of Philadelphia, U. Section A., 7215 drums of pale spindle oil which is a lubricating oil and is used for lubrication alone. The said drums were imported into India by the petitioner under two invoices both dated the 30th September 1949, one for 6500 drums and the other for 715 drums. Both the said invoices described the goods thereby covered as 'Spindle Oil' for lubrication not being a white spindle oil or a technically white or a white mineral with flash point open 250 degree P. minimum.

(3.) The said oil was imported under Import licence No. 088842/ 48 /CCI dated the 23rd June 1949 permitting import of lubricating oil excluding white spindle, Technically White and White Mineral Oil from the United States of America. The goods arrived at the Port of Calcutta on the 6th of March 1950. The petitioner states that the said oil is "Lubricating Oil" within the meaning of item 27(8) of the First Schedule to the Tariff Act 1934, i.e., oil such as not ordinarily used for other purposes than lubrication. According to item 27(8) the rate of import duty is Rs. 0/2/6 per Imperial Gallon. It is stated in the petition that the invoices, cables and correspondence and other papers relating to the purchase of the said goods bear out the fact that the oil that was purchased was 65/75 pale Spindle Oil whose open flash point was about 270 degree F., and it was neither White Spindle nor Technically White oil nor White Mineral Oil. It is further stated that it would appear from the letter of the Central Board of Revenue, New Delhi, to the Indian Chamber of Commerce, Calcutta, according to the Board 'Spindle Oil, is assessable to duty under item 27(8) of the Indian Customs Tariff as 'Lubricating Oil' and if duty is imposed under any other Tariff item than item 27(8) since November 1948 such duty would be refundable to the persons entitled to such refund.