(1.) IN this Rule the petitioners challenge the imposition of certain levies under the taxes on Entry of Goods into the Calcutta metropolitan Areas Act, 1972 (hereinafter referred to as "the Act") and the Rules framed thereunder.

(2.) ACCORDING to the petition, since the year 1971 the petitioner No. 1, of which the petitioner No. 2 is a Director, have been carrying on business in wine, liquors, beer, cigarettes, canned and bottled provisions as an importer for re-export by way of supply to foreign going vessels as various ships' stores and also to the diplomatic personnel and consular staff.

Some time in the year 1973, the petitioner imported condensed milk from holland, the C. I. F. Value of which was Rs. 7500/ -. Under a mistake of law, the petitioner made an application in form IV to the assessing Officer Seaport Check Post and was assessed to an Entry Tax of Rs. 455/-under the Act. According to the petitioners, the goods which they imported from the foreign sellers were strictly for the purpose of re-export as ships' stores to foreign-going vessels and it could not be utilised used or consumed within the territorial limits of union of India. They would only be used by the crew and officers of the foreign-going vessels after the vessel had crossed the territorial limits of the country to the next port of call. According to the petition, is terms of Section 46 of the Customs Act, 1962 the petitioner filed a Bill of Entry in the usual course containing all the particulars of the goods to be imported by the petitioners including their county of origin and a further declaration that the goods covered by the Bill of Entry were meant for re-export only and are to be kept in the approved bonded warehouse. In the original petition it is stated/that the goods were kept under the direct supervision and control of the Customs authorities for onward dispatch to foreign-going vessels. In the petition it is stated that after the goods are placed on board the foreign-going vessels the Customs Officers sealed the same and the said goods could not be consumed till such time as the vessels leave the Indian territorial waters. As such it is contended that the act has no application to the entry of these goods into the Calcutta Metropolitan Area.

(3.) AT the time of hearing of this application I felt that all the necessary facts with regard to the importation of these goods and their supply to the foreign-going vessels were not specifically stated in the original petition. As such, I granted leave to the petitioner to file a supplementary affidavit stating all the necessary particulars with regard to the impugned transactions. Pursuant to the leave granted by me, a (supplementary affidavit has been filed on behalf of the petitioners affirmed by one reginald Furtado on the 28th January, 1980. According to the deponent of the further, affidavit, he is an Ex-inspector of customs Department, Government of India. Having retired, he joined the petitioner No. 1 as one of its Principal Officers. In the further affidavit of Furtado the procedure for importation and supply of these goods have been specifically stated in the following terms :-"

(a) The Master and/or Chief Steward of a foreign-going vessels in Calcutta Port requiring bonded stores for the sole use of officers and crew, places an order with the petitioner company for delivery of the stores on board the ship. The petitioners, on receiving the said order, certified by the master/chief steward process the requisite customs documents for submission before the Customs authorities in the Calcutta customs House. The petitioners also applied for the service of a Customs Officer for the release of the stores from their bonded warehouse. Since the bonded warehouse is under the control of Customs department, a Customs Officer is posted for the release of the stores. The Customs officer and the petitioners' representative proceed to the bonded warehouse. Then after sorting the stores, which are