ART INTERNATIONAL Vs. UNION OF INDIA

JUDGEMENT

(1.) Some of the material facts, which are not in dispute, may noted at the outset.

(2.) The petitioner herein is sole proprietorship concern engaged in the business of import of ready-made garments and clothings. The petitioner holds a valid Certificate of Importer-Exporter Code (IEC) for running its business. By order, dated 24.8.2008, issued by the office of the Assistant Commissioner, Customs Division, Dhubri, the petitioner was given permission to import ready-made garments from Bangaldesh through various Land Customs Stations of North East including Mankachar Mahendraganj Land Customs Station.

(3.) Pursuant to the permission, so granted, the petitioner entered into a contract of sale, on 2.1.2009, with M/s. Friends International, a firm engaged in the manufacture of ready-made garments, with its address at 29-C Asad Avenue, Mohammadpur, Dhaka, Bangladesh, whereunder it was agreed, between the parties concerned, that M/s. Friends International would supply 1,50,000 pieces and 15,000 Kgs. of ready-made garments for a consideration amount of (US Dollars) $ 2,50,000 within a period of one year, through various land customs stations. Pursuant to the said contract for sale, payment, in advance, for the first consignment, was made by the petitioner by telegraphic transfer (in short, TT transfer) through the petitioner's banker HDFC Bank, on 10.2.2009, for (US Dollars) $ 4,400. A commercial invoice, dated 19.2.2009, was issued by M/s. Friends International in favour of the petitioner for a part of the first consignment, the consignment being of 2,108 pieces of ready-made garments for a consideration amount of (US Dollars) $ 600. Pursuant thereto, a Bill of Entry for home consumption, dated 28.2.2009, was given by the petitioner to the Customs Department and, after joint inspection of the goods, which was imported by the petitioner, the petitioner's representative received, from the customs officials, the imported garments, free from any discrepancy, and paid, on 3.3.2009, the requisite import duty of Rs. 1,619/-. Thereafter, another commercial invoice, dated 27.2.2009, was issued by M/s. Friends International in favour of the petitioner for second part of the first consignment, i.e., 16,900 pieces (112 Bales) for a consideration amount of (US Dollars) $ 3,800. The said consignment reached Mankachar Land Customs Station on 4.3.2009. The controversy, as regard the events, which followed the arrival of the consignment on 4.3.2004, at Mankachar Land Customs Station, constitutes the basis of this writ petition.