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Issues Involved:
1. Jurisdiction of customs authorities to issue show cause notices. 2. Mis-declaration of goods and applicability of Sections 113 and 114 of the Customs Act. 3. Validity of bond executed by the petitioner under Section 143 of the Customs Act. Issue-wise Detailed Analysis: 1. Jurisdiction of Customs Authorities to Issue Show Cause Notices: The customs authorities issued show cause notices alleging mis-declaration of the value of goods and an attempt to cause loss of government revenue. The petitioner challenged the jurisdiction of the customs authorities to issue these notices, arguing that the goods were neither "export goods" nor "dutiable goods" as defined under the Customs Act. The Court found substance in the petitioner's contention, noting that the goods had already been exported before the issuance of the notices, and thus were no longer "export goods" as per Section 2(19) of the Customs Act. Additionally, duty had already been paid on the goods, making them non-dutiable under Section 2(14). The Court concluded that the customs authorities could not confer jurisdiction on themselves by wrongly deciding jurisdictional facts, referencing the case of Raza Textiles Limited v. The Income-tax Officer. 2. Mis-declaration of Goods and Applicability of Sections 113 and 114 of the Customs Act: The customs authorities alleged that the goods were overvalued to claim them as jute specialities exempt from customs duties. The Court examined whether the mis-declaration of value constituted a violation under Sections 113 and 114 of the Customs Act. It was determined that the goods did not correspond in any material particular with the entry made under the Act, as there was no column for F.A.S. value in the declaration form, nor any declaration in respect of the same on the shipping bill. The Court held that the alleged mis-declaration did not attract the provisions of Section 113(1), which applies only to dutiable or prohibited goods. The notices did not allege that the contract price differed from what was stated in the shipping bill, and thus, the customs authorities had no jurisdiction to initiate proceedings based on the notices. 3. Validity of Bond Executed by the Petitioner under Section 143 of the Customs Act: The petitioner executed a guarantee bond without prejudice to its rights and contentions, agreeing to pay any fine or penalty found payable. The learned Advocate-General argued that by executing the bond, the petitioner submitted to the jurisdiction of the customs authorities and agreed to abide by their adjudication. However, the Court found that the bond was executed under compulsion, as the petitioner had to fulfil its obligations to foreign buyers and the customs authorities would not allow the shipment otherwise. The Court held that consent alone could not confer jurisdiction when the customs authorities had no jurisdiction under the statute. The bond referred to pending proceedings and did not cover the second series of notices, which were the impugned ones in this case. Conclusion: The Court concluded that there was no mis-declaration of goods to attract the provisions of Section 113(i) of the Customs Act, that a declaration of value for foreign exchange was not material for the purpose of the Customs Act, and that the goods were neither dutiable nor export goods. The customs authorities could not confer jurisdiction upon themselves by making a wrong decision as to jurisdictional facts. Consequently, the appeal succeeded, and the order and judgment of the lower court were set aside. The Rule issued on the 14th of July, 1969, was made absolute, with no order as to costs. The operation of this order was stayed for six weeks after the reopening of the Court after the long vacation.
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