MODERN THREADS INDIA LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) THE petitioner purchased two consignments of old unripped completely premutilated and fumigated original C. A. W. Woollen hosiery rage from M/s. Auckland Rag Co. Ltd. , Kagans, Newzealand and one consignment of same goods from M/s. Compagnie Verdier-Dufor, Paris, France. THE goods aforesaid were dispatched from respective foreign ports before 29. 2. 1992 and the payment too was made to foreign suppliers by State Bank of Bikaner and Jaipur through its foreign counter parts on or before 29. 2. 1992 in accordance with the procedure applicable.

(2.) THE facts as averred in petition for writ, the petitioner, a company registered under Indian Companies Act purchased the consignment of woollen hosiery rags during currency of export and import policy of Government of India (hereinafter referred to as ``exim policy"), which remained in force from 1. 4. 1990 to 31. 3. 1993, according to which the "official rate" of foreign exchange conversion (hereinafter referred to as "forex conversion") was available to all the persons importing goods under open general license as well as actual users. At the time when the petitioner placed order for consignment concerned there was only one rate of forex conversion viz. the official rate. THE petitioner understood that the import of all the woollen rags would be governed by official rate of forex conversion. THE Government of India after presentation of union budget for the year 1992-93 created two different rates of forex conversion, known as official rate and market rate. THE grievance of the petitioner is that the Collector of Customs, Mumbai assessed the value of the goods for purpose of levying the custom duty at the market rate of forex conversion which is quite higher than the official rates of forex conversion.

(3.) THE valuation of goods for the purpose of determination of the duty of custom on any goods is required to be assessed under the Act of 1962 in accordance with the provisions of Section 14 and Exim policy is nothing to do in this regard. THE valuation of such goods are required to be assessed on basis of forex conversion rate as in force on the date on which a bill of entry is presented before the Custom Commissioner in accordance with the provisions of Section 46 o the Act of 1962. THE Central Government is having absolute powers to determine such forex rate.