1993 (9) TMI 124 - SC - Customs

Supreme Court Affirms Tribunal Decision on Machinery Misdeclaration Case, Directs Customs Authorities

COLLECTOR OF CUSTOMS, BOMBAY Versus KRISHNA SALES (P) LTD.

The Supreme Court upheld the Tribunal's decision in a case involving the misdeclaration of imported machinery, confirming it as a 'Bevel Gear Generator.' ... Detention certificate - Issue of Demurrage charges - Held that:- So far as this case is concerned, we direct that the detention certificate should be issued without reference to para 4 of the said public notice or any similar public notice. Since the Respondents will not be absolved of the obligation to pay the demurrage charges altogether by reason of the detention certificate the Trustees of the Port of Bombay, (Respondent No. 2) are directed to consider sympathetically the request of the respondent No. 1 [M/s. Krishna Sales (P.) Ltd., Delhi] for waiver of these demurrage charges. Issues:1. Misdeclaration of imported machinery - Bevel Gear Generator vs. Bevel Gear Planer.2. Tribunal's decision based on technical aspects and expert opinion.3. Request for issuance of detention certificate by the Customs Authorities.4. Interpretation of public notice regarding detention certificates.5. Directive to issue detention certificate and consider waiver of demurrage charges.Analysis:1. The case involved a dispute regarding the nature of imported machinery by a company, labeled as a 'Bevel Gear Generator' by the importer but contested by Customs Authorities as a 'Bevel Gear Planer.' The Customs Authorities initiated adjudication proceedings on grounds of misdeclaration, leading to confiscation of the machinery. The Tribunal, after considering technical aspects and an expert opinion, allowed the importer's appeal, affirming that the machinery was indeed a Bevel Gear Generator as claimed by the importer.2. The Supreme Court noted that the issue at hand was a technical matter, not a question of law, and primarily a factual determination of whether the imported machinery was a Bevel Gear Generator or a Bevel Gear Planer. The Tribunal, comprising a technical member, had thoroughly evaluated all factual and technical aspects, including the expert opinion supporting the importer's claim. The Court found no reason to overturn the Tribunal's decision, emphasizing the technical nature of the dispute.3. The Respondent requested the Customs Authorities to issue a detention certificate covering the period during which the goods were detained, including the duration of pending proceedings. The Court highlighted that the Respondent, despite winning the appeal and being entitled to clear the machinery without duty payment, faced challenges due to the lack of a detention certificate necessary for clearance.4. The Court examined a public notice issued by the Collector of Customs, Bombay, outlining the issuance of detention certificates based on the duration of detention and the outcome of appeals. The Court criticized the provision in the notice that delayed the release of goods pending appeal decisions without obtaining a stay order, deeming it arbitrary and contrary to law. The Court directed the Customs Authorities to issue the detention certificate without adherence to the problematic provision.5. In conclusion, the Court directed the issuance of the detention certificate without reference to the contentious provision in the public notice. Additionally, the Court instructed the Port Trustees to consider waiving demurrage charges for the importer. The judgment concluded without imposing any costs and dismissed a related application.This detailed analysis of the judgment highlights the key issues, legal reasoning, and directives provided by the Supreme Court in the case involving the misdeclaration of imported machinery and the subsequent dispute over a detention certificate issuance.