1988 Supreme(Cal) 459

High Court Of Calcutta
Ajit K. Sengupta
GHANSHYAM CHEJRA - Appellant
Versus
COLLECTOR OF CUSTOMS - Respondent
Matter 395  Of  1988
Decided On : 12/16/1988

Headnote:

CUSTOMS ACT - Import of goods - Valuation - Collector of Customs has no power or authority to review his own order - It can only be done under the provisions of Section 129d - Procedure adopted is contrary to all rules and norms and only to prejudice the petitioner, the loading was made in the value and thereupon the demand was realised from the petitioner - This is one of the crucial fact which has to be taken into account in judging the conduct of the respondents - Under Article 226 of the Constitution, no tax can be levied or collected except by authority of law - In the instant case, as indicated earlier, monies were collected without any authority of law - The goods cleared for home consumption were re-assessed and duty collected on it illegally and wrongfully circumventing the provisions of the Act - Secondly, the redemption fine upon confiscation and penalty were collected even before the impugned adjudication order dated 29th September, 1987 was communicated to the petitioner - This Act of high handedness can only be corrected by an appropriate writ of this Court.

Fact of the Case:

The petitioner is the sole proprietor of M/s. Trident Electronics. He is an importer of various electronic components and material parts of T. V., V. C. R., Electronic Typewriter and other accessories. The petitioner purchased 600 pieces of Tape Deck Mechanism from one such Export House, namely, M/s. Mercury Exports on 'high Sea Sales Basis'. The petitioner also purchased 600 pieces each of V. C. R. Top Cover, Bottom Plates and Chasis Front Panel from M/s. Oriental Leather Industries who is also an Export House on 'high Sea Sales Basis'. Apart from the above-mentioned two High Seas purchases, the petitioner himself imported two consignments of Printed Circuit Board Sub-Assembly, Remote Control and Misc. Hardware. The goods imported by M/s. Mercury Exports and M/s. Oriental Leather Industries are covered by two separate valid import licences dated 16th December, 1986 and 11th February, 1987. The Custom authorities had examined and physically verified the said goods imported by the said two Export Houses. Upon such examination and verification, they found the goods according to the declaration as regards the value and specification. Thereafter they assessed the Customs duty. The Customs authorities permitted the goods imported by M/s. Mercury Exports to be kept in the Bonded Warehouse under Section 59 of the Customs Act. The petitioner has taken delivery of 100 pieces of the said goods from the Bonded warehouse upon payment of the customs duty as already assessed. The goods purchased from Messrs. Oriental Leather Company were assessed, duty paid and were duly released for home consumption under Section 47 of the Customs Act, 1962. The remote control and accessories imported by the petitioner were adjudicated by an appropriate officer of the Customs and fine and penalty were levied thereon and on payment of such fine and penalty, the goods were released to the petitioner for home consumption under Section 47 of the Customs Act, 1962.

Finding of the Court:

The Collector of Customs has no power or authority to review his own order. It can only be done under the provisions of Section 129d - The procedure adopted is contrary to all rules and norms and only to prejudice the petitioner, the loading was made in the value and thereupon the demand was realised from the petitioner - This is one of the crucial fact which has to be taken into account in judging the conduct of the respondents - Under Article 226 of the Constitution, no tax can be levied or collected except by authority of law - In the instant case, as indicated earlier, monies were collected without any authority of law - The goods cleared for home consumption were re-assessed and duty collected on it illegally and wrongfully circumventing the provisions of the Act - Secondly, the redemption fine upon confiscation and penalty were collected even before the impugned adjudication order dated 29th September, 1987 was communicated to the petitioner - This Act of high handedness can only be corrected by an appropriate writ of this Court.

Issues: Whether the Collector of Customs has the power or authority to review his own order.

Ratio Decidendi: The Collector of Customs has no power or authority to review his own order. It can only be done under the provisions of Section 129d of the Customs Act.

Final Decision: The application is allowed to the extent indicated above. The order of adjudication including short levy demand notices shall stand set aside and quashed. The Collector of Customs is directed to refund the amount collected by the Customs authorities from the petitioner as and by way of short levy demand. The Customs authorities shall also refund the excess amount of Customs duty realised by levying duty of spare parts as complete V. C. R. Sets. Customs duties shall be charged on assessment of the consignment as components/parts only. Let the personal penalty amount paid by the petitioner be refunded to the petitioner.