TMI Blog1994 (1) TMI 120X X X X Extracts X X X X X X X X Extracts X X X X ..... ition made by the Assessing Officer. 2. The assessee is a Registered firm and the assessment year involved is 1985-86 for which the accounting year ended on 31-3-1985. Assessee follows Mercantile Method of Accounting. According to the Assessing Officer, the assessee carries on business of import and export of iron, steel and pharmaceuticals both on own account and also as agent of principals. While completing the assessment, the Assessing Officer noticed outstanding liability for custom duty. The case of the assessee was that the liability related to agency business in respect of which the assessee is entitled to receive commission charges only. Assessee obtains amounts from principals and clears the imported goods by paying custom duty a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ustom duty payable on the goods imported by them and the imported goods were kept in the Bonded warehouses with the sanction of the Customs Department and the customs duty was payable out of the advances received as and when the goods were removed from the Bonded warehouses. The goods were owned by M/s. Lloyd Steel Industries and the assessee had no interest whatsoever in the imported goods. However, the custom duty payable was shown in the books of the assessee in the balance-sheet only and which would get reduced by the amount of custom duty actually paid and thus the outstanding liability would be wiped out by actual payment. Keeping in view the true nature of the transaction and the vested right in the imported goods, the assessee conte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ause or permit the holder of the Letter of Authority to dispose of the goods. The holder of the Letter of Authority shall clearly indicate on all the relevant customs documents including the triplicate copy of Customs Bill of Entry that the goods have been imported by him on behalf of the Licensee. This endorsement will be duly attested by the Customs authorities". 6. Similar power of authority was given for licence No. P/K/0449340/C/ XX/79/B/81, dated 12-5-1981 for Rs. 10,08,69,570 and similar conditions were specified therein vide pgs. 37A 37B of the paper compilation filed. Bill of Entry for warehousing contained in pg. 26A of the paper compilation refers to the licence number of licensee and Bills of Entry for Ex-bond clearance for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rms of the judgments of the Patna High Court in the cases of Jamshedpur Motor Accessories v. Union of India [1991] 189 ITR 70, Calcutta High Court in CIT v. Sri Jagannath Steel Corpn. [1991] 191 ITR 676 and Orissa High Court in the case of CIT v. Pyarilal Kasam Manji Co. [1992] 198 ITR 110. The learned Departmental Representative has duly supported the order of the Assessing Officer. 10. We have duly considered the rival submissions, the record and the paper compilation filed by the assessee. In view of the material evidence brought on record, we are satisfied that the assessee is merely an agent so far as outstanding custom duty under consideration is concerned acting for and on behalf of the principal. The assessee has no right vested ..... X X X X Extracts X X X X X X X X Extracts X X X X
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