S.B.SINHA, P.K.BALASUBRAMANYAN
Indochem Electronic – Appellant
Versus
Addl. Collector of Customs, A. P. – Respondent
JUDGMENT
S.B. Sinha, J.—Leave granted.
2. The appellants supplied EPABX telephone system to the respondent in the month of March, 1990. The said system was installed in the office of the respondent on 18th March, 1990 at a cost of Rs. 1,87,599/-. In terms of the contract of sale entered into by and between the parties, a warranty for a period of 1 year was issued for the said equipments. The appellants during negotiations agreed that a service centre at Vishakhapatnam would be opened for convenience of the said office and other customers. The said assurance was categorically given in the offer of the respondent dated 14.2.1990. At the relevant time furthermore approval of the Telecommunication Department for installation of the EPABX system in the respondent’s office had not been given. The respondent was informed, on a query made in that behalf by the Chief General Manager of the Telecommunication Department, that the EPABX system supplied by the appellants was not in department’s approved list. Such approval was, however, granted only on 25.3.1991.
3. On or about 13.9.1990 a letter of complaint was issued by the complainant to the appellants herein inter alia stating that :
"It is re
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