TMI Blog1992 (5) TMI 29X X X X Extracts X X X X X X X X Extracts X X X X ..... Lading was issued on 1st January 1983, and in respect of other two, the Bills of Lading were issued on 5th January 1983. The petitioner endorsed the Bills of Lading in favour of foreign buyers and negotiated the documents through a Bank. It also realised the price of the goods. Pursuant to the written order passed by the Proper Officer, the vessel left the customs station but while it was still in the territorial waters of India, it met with an accident on 7-3-1983 and sank off Bombay beyond the limits of the port but within the territorial waters of India. Along with the vessel, the goods shipped by the petitioner also sank. 2. It is the petitioner's case that it had completed all the formalities for exporting the goods and even the ownership in the goods had passed on to the foreign buyers. The price of the goods was realised and the Government earned foreign exchange. Thus, it became entitled to the benefit of the export incentives, like cash incentive, replenishment licence, refund of excise duty and drawback of duty relatable to fibre, yarn and like contents used in the manufacture of fabrics. It, therefore, applied to the Government and other authorities for granting those ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut of India to a place outside India. "Export goods" are fined in Section 2(19) as meaning "any goods which are to be taken out of India to a place outside India". "India" is defined by Section 2(27) as including "territorial waters of India". Section 12 of the Customs Act provides for levy of duty on goods imported into or exported from India. Section 14 provides for valuation of goods for purposes of assessment. The value of such goods is to be determined on the basis of the price at which such or like goods are ordinarily sold or offered for sale for delivery at the time and place of importation or exportation, as the case may be. Section 16 provides for the date for determination of rate of duty and tariff valuation of export goods. It is either the date on which the shipping bill or the bill of export is presented, or the date of payment of duty. As required by Section 50, the exporter of any goods has to make an entry thereof by presenting to the Proper Officer in the case of goods to be exported in a vessel a shipping bill. If the Proper Officer is satisfied that the goods exported are not prohibited goods, and the exporter has paid the duty, he has to make an order under Se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ia whether it is in the context of 'exportation from India' or' importation into India' of goods within the meaning of dutiable goods in the context of Section 12(1) of the Act. We would have followed this decision without further discussion had it been a case of importation of goods. In that case, there was an import of goods and the question which had arisen for consideration was whether landing charges levied by the port authorities for unloading of imported goods can be included in the assessable value of the said goods for the purpose of computation of the customs duty. It was thought that no other interpretation was possible. 7. The Madras High Court in Lucas TVS v. Assistant Collector of Customs, 1987 (28) E.L.T. 266, has also taken the same view while dealing with a question relating to export of goods. In that case the question which had arisen for consideration was at which stage goods can be treated as having been exported out of India for the purpose of drawback allowance claimable under Section 75 of the Customs Act. What had happened in that case was that after the cargo was loaded in the ship by which the goods were to be exported, it caught fire and some of the go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8. Not only with respect to import but with respect to export also, the Bombay High Court has taken a contrary view in V.M. Salgaocar and Brother Pvt. Ltd. v. Union of India and other 1987 (30) E.L.T. 251, the Bombay High Court has held that export of goods takes place only when such goods are taken out of India, i.e. taken out from the territorial limits of India to a place outside India. In that case, the exporter had presented a shipping bill to the customs authorities on 8-3-1985. Duty was paid on the iron ore which was to be exported, and the customs authorities granted entry outwards to the ship on 11th March 1985. On the same day, an order directing clearance and loading of customs goods was made under Section 51 of the Customs Act. Loading began on 19-3-1985 and was completed on 21-3-1985. The vessel sailed for the foreign destination on 25th March 1985. Export of iron ore was subject to duty of customs till 16th March 1985. However, by notification dated 17th March 1985, which came into force on the midnight of 16/17th March, 1985, iron ore was exempted from whole duty of customs leviable thereon when exported out of India. The exporter, therefore, claimed a refund of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reign trade and commerce. Goods are imported for the purpose of making them available in the country. By levying duty on such goods, not only revenue is earned but inflow of such goods is regulated. When goods are exported, they cease to be available for use in the country. Levying of duty thereon not only helps in earning revenue but it also helps in regulating outflow of goods and in earning foreign exchange. The purpose of granting drawback is also to encourage export by making Indian goods more competitive in international market. They are in the nature of export incentives. Another aspect required to be considered is that in view of the provisions of law, import or export does not take place at one point of time. The process of importation and exportation is spread over a period of time. In case of import, it would start when a ship carrying goods enters the territorial waters of India and when the goods are landed and cleared for home consumption. In case of export, it would commence, if not earlier, when the goods are loaded after entry outwards is granted and the ship is permitted to depart, certainly when it leaves the port and it will end when the ship goes out of the ter ..... X X X X Extracts X X X X X X X X Extracts X X X X
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