TaxTMI 
TaxTMI 
1983 (11) TMI 64
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....and Ravi Nariman being the only shareholders of the Company transferred all their shares to one Shriyans Prasad Jain and others and thereafter the petitioner No. 1 Company became a deemed public company under the provisions of the Companies Act, 1956. 2. The petitioners, to carry on the business as manufacturers and dealers in cutlery, are regularly importing the necessary raw materials required for the manufacture of cutlery. By a contract dated July 21, 1969 entered into between the petitioner No. 1 and one Mitsui & Company Limited, Japan, an order for import of 115 Metric tonnes of prime quality stainless steel sheets in coils at the price of U.S. Dollars 878.40 per metric tonne c.i.f. was placed. The petitioner No. 1, in order to be en....
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....ry. The Officers of the Customs Appraising Department assessed the value of the goods as being U.S. Dollars 1170 per metric tonne instead of the price of U.S. Dollars 878.40 per metric tonne mentioned in all the relevant documents. The petitioners were thus compelled to pay the excess customs duty. 4. The petitioners paid the excess customs duty charged by the Customs authorities and thereafter filed applications for refund of the excess customs duty under Section 27 of the Customs Act, 1962. The refund applications filed by the petitioners were within time. The Assistant Collector of Customs, Bombay, by his order dated December 27, 1971 rejected the applications. The Assistant Collector took the view that the consignments were shipped aga....
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....uthorities have held that the licence was granted to the petitioners on the strength of the invoice, and after securing the licence, the petitioners opened the letter of credit. The authorities felt that though the price was confirmed by the supplier in November 1969, the letters of credit were opened only on January 14, 1970 after obtaining the licence and the consignment reached the Bombay Port between April 1970 and June 1970. The authorities felt that as higher rate was prevailing at the time when the consignments were shipped, the petitioners would be liable to pay the duty on the basis that the value of the consignment was U.S. Dollars 1170 per metric tonne in accordance with the provisions of Section 14 of the Customs Act. 6. Shri R....
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....nd the copy of the licence is annexed as Ex. "B collectively". The perusal of the licence indicates that the petitioners were permitted to import 164 metric tonnes of stainless steel sheets for manufacture and the import was to be in conformity with the types, specifications, weights and price as given in the proforma invoice dated October 29, 1969. The conditions attached to the licence establish that the advance licence was granted to the petitioners as actual users and registered exporters and was on condition that the petitioners would export only quality stainless steel cutlery as covered by the export order in favour of M/s. Bloomfield Industries Inc., Chicago, U.S.A. After securing the licence, the petitioners received a confirmation....
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....e price at which such or like goods are ordinarily sold, or offered for sale, for delivery at the time and place of importation or exportation, as the case may be, in the course of international trade, where the seller and the buyer have no interest in the business of each other and the price is the sole consideration for the sale or offer for sale; [Provided that in the case of imported goods, such price shall be calculated with reference to the rate of exchange as in force on the relevant date referred to in sub-section (1) of Section 15]; (b) where such price is not ascertainable, the nearest ascertainable equivalent thereof determined in accordance with the rules made in this behalf." The material available to the authorities in the ....