TMI Blog1981 (9) TMI 131X X X X Extracts X X X X X X X X Extracts X X X X ..... llenged mainly on two grounds :- 1. That there was no mis-statement in regard to the value as petitioner has no knowledge of the value of the goods as determined by the Collector. 2. That the value of the goods was determined by the Collector in contravention of Section 30 of the Sea Customs Act, 1878. The submission is that the department was wrong in fixing the wholesale price on the basis of sale contracts and the consequent invoices of the foreign manufacturers. 2. The petitioner imported art-silk fabrics under import trade control licence No. 981149/60/CCI, dated 6-1-1962. The term of the licence was that art-silk fabrics should be re-exported after imposing embroidery and hand-stiching on it. The petitioner was served with the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntended that they had no knowledge of the sale contracts and invoices. It was then stated : "We are completely unaware of the nature of the relationship existing between the four aforesaid firms namely M/s. M. Teramoto Co. Ltd., Osaka, M/s. Kaysons Corporation of Japan, M/s. Khem Chand Sons, Singapore and M/s. Eastern Traders, Kuala Lampur, nor have we any knowledge of their business and/or financial dealings with one another." 4. It may be stated that M/s. Teramoto Co. were the manufacturers of the art-silk and M/s. Kaysons of Japan were the suppliers. It may be noted from the relative bill of lading the goods were shipped by M/s. Kaysons Corporation of Japan direct to Calcutta and the name of the consignee was shown as M/s. Hot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ioner contends that for attracting penalty under Section 167(37)(c) it is necessary that the `mis-statement' should be made with knowledge. He submits that the petitioner had no knowledge of the transactions between other parties stated above. It is not possible to accept the petitioner's contention. First of all it is very difficult to believe that an international contract can be an oral contract. So also on his own showing the petitioner is having business with Eastern Traders, Kuala Lumpur for over a long period of time. If it is so it is unlikely that he would not know that Eastern Traders were not the manufacturers of the goods and also the fact that the goods were not manufactured in Malaysia. Along with the bill of entry the petitio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ta at the appropriate time in order to find out the price at which the goods of the same kind and quality were sold or were capable of being selling. His argument is that there is no such factual determination by the department. The reliance on sale notes and invoices were extraneous to such determination. From the order of the Collector, the Board, and the Central Government I do not find that the challenge was raised in this form except in reply to the show cause notice. The only contention raised was that the valuation was not `real' because the invoice issued by M/s. M. Teramoto Co. showed higher price than invoice No. 139/62 issued by M/s. Kaysons Corporation. The argument is that the department was wrong in relying on the invoice sh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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