JAWHAR KNITTING MILLS Vs. COLLECTOR OF CUSTOMS

JUDGEMENT

(1.) Under a license to import nylon buttons from soft currency area upto value of Rs. 8,000 the petitioner firm imported one consignment of buttons allegedly from Hong Kong of the value of Rs. 3612.54NP. (Rs. 3600/-according to affidavit-in-opposition), hereinafter referred to as the first importation. The goods were allowed to be cleared on payment of duty. When the next consignment of buttons, valued at Rs. 4360/- in the bill of entry, arrived, the clearance of the goods was held up because the customs authorities considered the declared value to be too low. The petitioner firm sought to justify the declared value on the theory that the goods being of Hong Kong manufacture, the value was cheap. In support of this theory, the petitioner produced before the customs authorities certain documents, which, however, failed to impress the customs authorities.

(2.) On March 18, 1960, the petitioner was charged with misdeclaration of the value of the consignment in the following language:--

(3.) Thereafter, on April 19, 1960 there was another notice served upon the petitioner firm to show cause why the first importation of buttons should not be treated as unauthorised and action should not be taken against it under Section 167(8) of the Sea Customs Act, because of the following reason: