Importer's right to choose an empanelled chartered engineer governs fresh inspection of second-hand machinery.

For imported second-hand machinery, the governing circular permitted the importer to choose any chartered engineer empanelled by the Custom House for inspection and valuation, and no Custom House could insist on a particular engineer. Because the Department had proceeded on the basis of an engineer whose report was adverse to the importer, the inspection process was found inconsistent with that procedure. The Court directed fresh inspection by a chartered engineer chosen from the panel, required the report to be shared with both sides, and left the request for release of the machine to be decided on merits after reconsideration.

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Issues: Whether, in the case of imported second-hand machinery, the importer was entitled to select any chartered engineer from the Customs House panel for inspection and report, and whether the machine was required to be re-examined on that basis.

Analysis: The circular governing valuation and inspection of second-hand machinery provided that no Custom House could require inspection or appraisement by a particular chartered engineer and that the importer was free to select any chartered engineer empanelled by the Custom House for the relevant class of goods. The Department had itself appointed a chartered engineer whose report was adverse to the importer, which was inconsistent with that procedure. The Court therefore directed the importer to furnish the name of a chartered engineer from the Customs House panel, required inspection to be carried out afresh, and directed that the report be shared with both sides before the request for release of the machine was decided on merits.

Conclusion: The importer was entitled to choose an empanelled chartered engineer for fresh inspection, and the matter was directed to be reconsidered on that basis.

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