1997 (6) TMI 105

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....able in the licence did not cover the value of the goods imported and it was insufficient. Therefore, show cause notice was issued on 3-11-1987 and the appellants' defence was that the short fall in value balance in the import licence has occured only because of the fact that in one of their import consignment of bon acid vide Bill of Entry No. 1606/91 against the same licence, the assessable value had been loaded by the Appraising Group of the Customs House and the licence had also been debited for the enhanced assessable value. They submitted that had this not been done and if only the cif value as per the invoice had been debited, the present short fall value would not have taken place. The Dy. Collector of Customs, Mumbai Customs House ....

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....by the Customs authorities for the purposes of assessment of the goods to duty under Section 14 of the Customs Act, 1962. The High Court held in the case of Union of India v. Glaxo Laboratories (India) Ltd. - 1984 (17) E.L.T. 284 that there is one kind of valuation for the purpose of assessment to customs duty but another for the purpose of cif value which is to be debited to the licence. This value to be debited consists of the price of the goods and the commission allowed and where the commission is not apparent on the surface, it is the duty of the Customs authority to find out and add to it the said price along with the freight and insurance so as to constitute cif price for the purpose of debiting the licence. The Bombay High Court fur....

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....use the value of the earlier consignment had been loaded by the customs house and such loaded value had been debited to the licence. 5. For considering the nature of the offence in this case, it is also ncecessary to look at the type of licence with which we are concerned. It is an advance licence under the Duty Exemption Entitlement Certificate. Such licences are issued on the estimated requirement of the input for the given quantity and value of export goods. Such quantities are determined in accordance with standard input-output norms as laid down in the Import Policy. It is also subject to fulfilment of time bound export obligation and prescribed value addition. The particular licence with which we are concerned is one such adva....