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1992 (6) TMI 110

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..... icant Samsuddin Sheikh the above said sum representing the value of the goods in question at the rate of Rs. 4.28 per piece of the ready-made garment. 3. It was stated by the applicant Samsuddin Sheikh in his application that the market value of the seized goods at the rate of Rs. 4.28 per piece is arbitrary and there is no basis for the same. He contended that 16,617 pcs of old/used readymade garments (long pants) of foreign origin was the subject matter of the seizure in this case. At the time of seizure, the department itself valued the goods at Rs. 1,66,170/-. Representative samples of the goods were drawn and they were also kept with the department. It was further stated in the application that the value of Rs. 71,121/- arrived at by the authorities below is without any basis and there is a shortage of 95,049 rupees as against the value arrived at by the departmental authorities at the time of seizure. It was also stated that the applicant had submitted several evidence in this case to prove that the pieces in question during August/September, 1989 valued at Rs. 15to 16 per piece. They are produced at Annexure E, P, G, K and H annexed to the petition. In these circumstances, .....

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..... also pointed out that the department had sold the garments in question at Rs. 4.28 N.P. per piece, which is far below the seizure value. He contended that the market value of the goods should have been determined which was not done in this case. Shri Chatterjee contended that the market value denotes the rate at which an article or commodity is sold and purchased at a public place by the public customers and this is quite distinct from the rate of cooperative organisations sale. He contended that the lower authorities totally overlooked this aspect and the reliance placed on the prices of the sale of such goods by the Customs authorities to the N.C.C.F. or any other cooperative organisation is not a correct market value. However, in the circumstances of this case, he stated that at the rate of Rs. 15 per piece which is claimed by the applicant by production of evidence, the value will be Rs. 2,49,255/-, but the applicant will be satisfied if the seizure value is fixed as the market value. 5. The learned Counsel also stated that the Customs department had sought the permission of the Magistrate for sale of these garments and the learned Magistrate of Murshidabad district passed .....

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..... confiscation. In that case also Collector of Central Excise vide his order dated 10-1-1964 ordered the confiscation of gold and gold ornaments seized on 26th April, 1963. It appears that on 1-4-1966 an application for return of the confiscated gold and gold ornaments was made by the owner of the goods which was rejected by the Collector on 7-5-1966. Aggrieved, the owner took up the matter in writ before the Calcutta High Court wherein the owner was given a liberty to file a fresh representation before the Collector of Central Excise and the Collector was directed to reconsider the matter. Accordingly a fresh representation was made by the owner and on reconsideration, the Collector of Central Excise vide his Order dated 6-5-1985 held that the confiscation order of seized gold passed on 10-1-1964 was not sustainable. Accordingly he ordered for release of confiscated gold. Since the gold was not returned by the authorities concerned the owner took up the matter again in the High Court where the trial Judge directed the Union of India and its officers either to return to the writ petitioner equivalent quantity of gold seized on 26-4-1963 or to pay the market price of such gold as on t .....

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..... s good a situation as if the goods were available to him. The fundamental basis thus is that the compensation for the pecuniary loss Which flows from the wrong done to him. 9. In this particular case, if the value is calculated at the rate of Rs. 15 per piece of the .said garments, then the same will come to Rs. 2,49,255/-. The seizure of the goods was made in the year 1982. As per the principles laid down by the Hon ble High Court of Calcutta in the decision reported in 1986 (26) E.L.T. 719, this Tribunal ordered that the department should pay the market value of the goods in question to the applicant Samsuddin Sheikh as on the date 11-9-1989, on which date the order of confiscation of i the goods was set aside by this Tribunal. The Tribunal can take judicial notice of the fact that value of old garments have not reduced in the year 1989 than in the year 1982. The prices only have gone up. During 1982 when the seizure was made the department itself valued these goods at Rs. 1,66,170/-. It is not the case of the department that this value arrived at by them is wrong. 10. It is further seen from the certified order sheet of the learned Magistrate of Murshidabad, that he had pass .....

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..... ecause it is presumed to be the true value of the goods to the purchaser. One of the principles for award of damages is that as far as possible he who has proved a breach of a bargain to supply what he has contracted to get is to be placed as far as money can do it, in as good a situation as if the contract had been performed. The fundamental basis thus is compensation for the pecuniary loss which naturally flows from the breach. Therefore, the principle is that as far as possible the injured party should be placed in as good a situation as if the contract had been performed. In other words, it is to provide compensation for pecuniary loss which naturally flows from the breach. The High Court correctly applied these principles and adopted the contract price in the facts and circumstances of the case as the correct basis for compensation." 13. Applying the principles enunciated in the above-said decision to the facts of this case, it is seen that the fundamental basis in awarding the market prices is compensation for pecuniary loss which naturally flows from the wrong done to the appellant. The goods of the applicant which was seized was held to be against law and the same was ord .....

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