TMI Blog1989 (5) TMI 66X X X X Extracts X X X X X X X X Extracts X X X X ..... the absence of anything else, we may take it that the entry was recorded on that date itself. Accordingly, the rate of import duty and the tariff valuation shall be that in force on 31 July, 1981. The contention of the petitioners that the rate of import duty and tariff valuation will be that ruling on 11 July, 1981 cannot be sustained and is rejected. As to the question whether Sec. 15 of the Customs Act is ultra vires on the ground that arbitrary discretion has been conferred on the customs authorities in the matter of determining the date of inward entry, it seems to us that having regard to the procedure detailed above there is no scope for the submission that the provision is invalid. Appeal dismissed. - 3130 of 1981 - - - Dated:- 17-5-1989 - R.S. Pathak C.J.I, Sabyasachi Mukharji, S. Natarajan, M.N. Venkatachaliah and S. Ranganathan JJ. [Judgment per: Pathak, CJI]. - By this writ petition under Art. 32 of the Constitution the petitioners seek relief against the imposition of customs duty at 150 per cent on their import of edible oils into India. 2.The petitioners entered into a contract with foreign sellers for the supply of edible oils. The consignment of edi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies it is necessary to ascertain the effective date with reference to which customs duty becomes payable on imports into India. Section 15(1) of the Customs Act, 1962 provides : "(I) The rate of duty and tariff valuation, if any, applicable to any imported goods, shall be the rate and valuation in force, - (a) in the case of goods entered for home consumption under Section 46, on the date on which a bill of entry in respect of such goods is presented under that Section; (b) in the case of goods cleared from a warehouse under Section 68, on the date on which the goods are actually removed from the warehouse; (c) in the case of any other goods, on the date of payment of duty: Provided that if a bill of entry has been presented before the date of entry inwards of the vessel by which the goods are imported, the bill of entry shall be deemed to have been presented on the date of such entry inwards." 5.The rate of duty and tariff valuation applicable to the imported goods is governed by cl. (a) of S. 15(1). In the case of goods entered for home consumption under Section 46, it is the date on which the Bill of Entry in respect of such goods is presented under that Section. Sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of entry inwards" in the proviso to Sec. 15 (1) as the date on which the vessel enters the territorial waters of India. Learned counsel for the petitioners says that if this interpretation cannot reasonably be given to the provisions of Sec. 15(1) then it becomes necessary to question the constitutional validity of Sec. 15 on the ground that the terms of that section are vague and arbitrary, and therefore no recourse can be had to Section 15(1). 7.Considerable reliance has been placed by the petitioner on Shawney v. M/s. Sylvania andLaxman Ltd. -1987 (30) E.L.T. 126 (Bom.) = 1977 Bom. L.R. 380 in support of the submission that the taxable event occurs when the vessel enters the territorial waters of India and it is that date which should determine the rate at which import duty can be levied. It is desirable, we think, to appreciate what was said in that case. The Bombay High Court held there that the date on which the vessel enters the territorial waters is the relevant date for determining whether the import of goods carried by it falls within the scope of the Customs Act. If the import of the goods is exempt from the operation of the Act on that date, the learned Judges said, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e determined in accordance with Sec. 15 (1) of the Customs Act. Under Sec. 15(1) (a), the rate and valuation is the rate and valuation in force on the date on which the Bill of Entry is presented under Sec. 46. According to the proviso, however, if the Bill of Entry has been presented before the entry inwards of the vessel by which the goods are imported, the Bill of Entry shall be deemed to have been presented on the date of such entry inwards. In the present case the Bill of Entry was presented on 9 July, 1981. What is "the date of entry inwards" of the vessel? We may refer to the detailed procedure in this matter set forth in the counter-affidavit of Shri R.S. Siddhu, then Under Secretary to the Government of India. 11.Before the arrival of the vessel the Master of the vessel or his Agent informs the Port authorities and the Customs authorities of the probable date of arrival of the vessel. This information is technically known as presentation of the Import General Manifest. In this Manifest the Master intimates the details with regard to the cargo carried by the vessel. In the instant case the Manifest was conveyed by the Steamer Agent on 6 July, 1981 by his letter No. IM/394 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to remain the same. Against the rotation No. 743 in column No. 3 of the Register of Inward Entry the date of the arrival of the vessel was indicated as 23 July, 1981, and in column No. 2 the date of Inward Entry was mentioned as 31 July, 1981. On 30 July, 1981 the Master of the vessel had made a declaration certifying that the vessel could discharge its cargo on 31 July, 1981, and it is on this basis that the Customs authorities granted the Entry Inward to the vessel for the purposes of discharging its cargo. 13.It is urged on behalf of the petitioners that the import of the goods must be deemed to have taken place on 11 July, 1981, when the ship originallly arrived in Bombay Port and registered itself. The rate of customs duty prevailing on that date was 12.5 per cent, and that, learned counsel contends, should be the rate applicable to the edible oil consignment under Sec. 15 of the Act. The circumstance that the vessel was unable to secure a berth in the Port of Bombay compelled it to proceed to Karachi to discharge the cargo pertaining to that Port, and but for the non-availability of the berth she would not have undertaken that voyage but would have continued in Bombay an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gister. In the present case, "the date of inwards entry" is mentioned as 31 July, 1981. In the absence of anything else, we may take it that the entry was recorded on that date itself. Accordingly, the rate of import duty and the tariff valuation shall be that in force on 31 July, 1981. The contention of the petitioners that the rate of import duty and tariff valuation will be that ruling on 11 July, 1981 cannot be sustained and is rejected. 16.As to the question whether Sec. 15 of the Customs Act is ultra vires on the ground that arbitrary discretion has been conferred on the customs authorities in the matter of determining the date of inward entry, it seems to us that having regard to the procedure detailed above there is no scope for the submission that the provision is invalid. An entire series of consecutive acts makes up the procedure, and it is reasonable to presume that each step in the series is completed on time. In that view of the matter, the challenge to the validity of Sec. 15 must fail. It is true that an amendment has been made in Sec. 16 in the case of the export of goods, and the rate of duty and tariff valuation applicable to export goods are now specifically r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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