TMI Blog1981 (10) TMI 41X X X X Extracts X X X X X X X X Extracts X X X X ..... 34. Under the provisions of the Indian Tariff Act, the Customs duty on an ad valorem basis was levied on the components. 2. On November 25, 1967, in excercise of the powers conferred under sub-section (1) of Section 25 of the Customs Act, 1962, the Central Government issued Notification No. 114, inter alia, providing that where the goods are imported in India packed in any materials, the materials in which the goods are so packed would be exempt from the whole of the duty of customs including countervailing duty, provided that the goods were packed in materials normally used in trade for packing such goods and the packing was not suitable for repeated use. The petitioners were importing components from the United States of America from t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 25 of the Customs Act. By this Notification, an additional condition was included to claim benefit under the Notification. The additional condition was that the value of the packing material should be included in the value for which the goods contained in the invoices. It would be appropriate to quote this additional condition :- "Value of the packages or containers or the like in which the goods are packed is included in the value for which the goods contained therein have been invoiced." After this Notification, the petitioners imported components by diverse consignments from time to time. In all these consignments, the invoices mentioned the value of the goods and the value of boxing charges or packing charges, pier delivery, ocean f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... various officers and the orders are annexed as Ex. I and Ex. K to the petition. The appellate authority broadly took a view that the invoices produced by the petitioners determined the boxing charges at 4% of the value of the goods imported and, therefore, it is not possible to conclude that the actual value of packing is mentioned in the invoices. Some of the orders proceed on the ground that the boxing charges were shown separately in the invoices and, therefore, the additional condition included in the subsequent notification was not fulfilled. Some of the orders proceed on the basis that the notification merely exempts normal containers or packages for separate levy of duty as distinct from goods packed in them and in the petitioners' c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s should be on the basis of the invoice value which should be deemed to cover the complete consignment both of the goods as well as of the packing. The petitioners have approached this Court by filing this petition under Article 226 of the Constitution of India on August 2, 1978 to challenge the legality of the orders passed by the authorities below. 7. Shri Setalwad, the learned Counsel appearing in support of the petition, submitted that the petitioners have more than satisfied Condition No. 1 included in the Notification dated June 10, 1972 and are, therefore, entitled to claim exemption from payment of duty in respect of value of packages or containers. As the revisional authority has proceeded to dismiss the refund applications only ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the condition of the Notification demands is that the value of the packages or the containers should be included in the invoice itself. It would not be proper to construe it as to hold that unless the value of the packages and value of the goods is combined and stated in the invoice, the advantage of the Notification is not available . I enquired from Shri Dalal as to what purpose would be served by compelling the importer to include the value of the packing in the value of the goods sold and then calling upon the importer to explain as to what is the value of the packages for the purpose of exemption. In my judgment, if the invoice includes the value of the packages or containers, then merely because it is not added to the value of the go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncludes the value of the containers. Shri Setalwad also relied upon the form of invoices provided by the Bill of Entry (Forms) Regulations, 1976 framed in exercise of the powers conferred by Section 157, read with Section 46 of the Customs Act and submitted that the forms do not require that the value of the goods and the value of the containers cannot be shown separately. The learned Counsel urged that the invoices filed by the petitioners are in accordance with the regulations framed and it is not open for the authorities to deny the advantage of the notification on a ground which is neither rationale nor in accordance with law. The submission is correct and deserves acceptance. Shri Setalwad also points out that as regards the other two ..... X X X X Extracts X X X X X X X X Extracts X X X X
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