M/S. Radhey Shyam Ratanlal & Anr vs Commnr. Of Customs ...

2. The entire proceeding arises out of a contract of importation of cloves of the bulk quantity of 300 MTs at US Dollars 2600 PMT CIF, Mumbai. It was alleged that the appellants herein entered into a contract with M/s. Ketan Trading Company, Singapore on 23.11.2000 for import of cloves. The goods were described as `cloves-Zanzibar/Indonesia' meaning thereby cloves of Zanzibar/Indonesian origin of the bulk quantity of 300 MTs at US Dollars 2600 PMT CIF Mumbai.

3. The aforesaid contract dated 23.11.2000 for the above-mentioned quantity of cloves was registered with the Customs Department by the appellants in the course of which three bills of entry were filed by appellants for clearance of part shipment declaring the contract price as the invoice price.

Page 2 of 16 Again, for further imports seven more bills of entry were filed by the appellants in terms of the direction of the respondent. The appellants paid the price at the enhanced price.

4. The Customs House initiated an investigation into the import of cloves included in all ten bills of entry. The Customs Department alleged that during the investigation, it was revealed that the aforesaid goods were invoiced by M/s. Ketan Trading Co., Singapore at Unit Price of US Dollars 2600 PMT CIF, Mumbai although the prevailing international price of cloves during the relevant period (in the month of January-February, 2001) was around US Dollars 5500 which reached to US Dollars 6500 PMT by the end of February and beginning of March, 2001 and that the cloves were not traded at a price less than US Dollars 4200 PMT during the year 2000 except in the beginning of January, 2000.

7. Further evidence was also collected indicating that as per the Public Ledger, an international publication of repute, the CIF European Port prices of cloves were ranging from US Dollars 4400 to US Dollars 6300 between 6.11.2000 and 26.3.2001. It was also indicated that several of the importers admitted that the cloves were imported by them at various prices ranging between US Dollars 5050 to US Dollars 5500 during the aforementioned relevant period. During the course of investigation, the partner of the appellant was also questioned. In that process, he admitted that the original contract was with M/s. Ketan Trading Co., Singapore for supply of 300 MTs and it was signed in November, 2000 and that he was having only a photocopy of the said contract. He stated that the international market price of cloves in the Page 4 of 16 beginning of 2001 was only US Dollars 2900 to US Dollars 3000 and that in February, March-April the price went up to US Dollars 5000 depending upon the quality. As regards the invoice bearing No. 624/2K- 01 dated 7.2.2001 issued M/s. IJIM ASIA in the name of M/s. Ketan Trading Co. showing consignment of 24.538 MTs of cloves at the rate of US Dollars 5600, he stated that one consignment was imported by him under bill of entry dated 24.2.2001, which was the same consignment mentioned and shown against invoice dated 7.2.2001.

8. It was also stated that while seeking clearance the quantity declared was 23.488 MTs, but on actual examination the consignment was found to be in excess by 1.05 MTs confirming the correctness of the quantity mentioned as per invoice dated 7.2.2001 i.e. 24.538 MTs.

11. Apart from the aforesaid appeal filed by the appellant, another appeal No. 169 of 2004 was preferred by the partner of the appellant Company in the same Tribunal. The Tribunal heard the parties and thereafter by an Order dated 8.3.2006 dismissed both the appeals filed by the appellant and its partner.

25. In terms of aforesaid discussion and in the facts and circumstances of the case, we find no merit in this appeal which is dismissed with costs. Counsel fee assessed at Rs. 25,000/-.