WEBTA PRIVATE LIMITED Vs. COLLECTOR OF CUSTOMS

JUDGEMENT

(1.) THESE three writ applications which are taken up for analogous disposal, arise out of claims for customs duty on goods exported by the petitioners to different foreign countries, said to be finished leather, which, according to the petitioners are exportable free of duty in view of a notification dated August 2, 1976 issued by the Central Government under Section 25 of the Customs Act, 1962.

(2.) SINCE in the said notification 'finished leather' was not explained, the Customs authorities were relying upon the different norms set out in that regard by the Central Leather Research Institute (hereinafter to be referred to as the 'C.L.R.I.') in 1973. According to the petitioners, the said norms set out by the C.L.R.I. having no legal foundation, could not be relied upon as such, but the Customs Authorities on the basis of the opinion expressed by the C.L.R.I. held that the subject goods exported by the petitioners were not 'finished leather' within the meaning of the exemption notification and levied customs duties on the goods.

(3.) ALL the three matters were contested by the respondents the Customs authorities, by filing separate affidavits in opposition. According to the respondents, the goods having been declared by the petitioners as 'finished leather', the consignments were classified free of duty on the basis of the said declaration. As per normal practice the consignments of leather were, however, examined by the Leather Trained Appraisers of the customs House. On such examination, the goods were found to be not in agreement with the declarations made by the exporters and, therefore, samples of the goods were forwarded to the C.L.R.I. for certification. However, since the exporters insisted for immediate shipment of the goods, they were allowed to execute bonds undertaking to abide by the terms of the bond in the event of adverse report from the C.L.R.I. The C.L.R.I. reported that the samples did not satisfy the norms and conditions of finished leather as laid down in C.L.R.I. Workshop, 1973. The goods, as such, not being finished leather as claimed by the exporters, duty at the rate of 25% was chargeable on the same.