- (1.) These are twelve petitions under Art. 32 of the Constitution. Messrs. Kanji Shavji Parekh are the petitioners in three of the petitions, numbered 235, 236 and 240. The petitioners of the remaining cases are nine other firms. It is stated that all these firms, including Messrs. Kanji Shavji Parekh are established importers holding quota rights for importing stationary articles and have their places of business in Calcutta.
(2.) These petitions have been heard together, as they raise identical questions. They have been argued together, and Mr. N. C. Chatterji appearing for all the petitioners has taken us in detail through the facts of petition No. 235 of 1956. He has stated that the facts of the other petitions are exactly similar in nature, with only minor differences in dates, names and other unimportant details which have no bearing on the questions at issue. We shall accordingly state the facts of Petition No. 235 of 1956 in detail, and we are relived from the task of stating the facts of the other petitions.
(3.) The relevant are these, Messrs. Kanji Shavji Parekh is a registered partnership firm, having its principal place of business in Calcutta. The partners of the firm are citizens of India. The firm is an established importer of stationary articles and has quota rights for importing stationary items including goods known as "Artists' Materials" and described in Appendix 10 at pages 376 and 377 of the Import Trade Control Policy Book for the licensing period July to December 1954. On 4th August 1954, the Joint Chief Controller of Imports and Exports gave a license to the said firm, hearing after called the petitioners, to import goods known as "Artists' Material", falling under serial No. 168 (C) of part IV of the Policy Statement for the period July to December, 1954. Item 168 of the said statement related to "articles made of paper and papier machie, stationery including drawing and copy books etc." Sub-item (c) related to "other articles" under the same item. A fuller description of "Artists' Materials" as given in Appendix XX referred to above. Item 11 of the said Appendix was 'Crayons'. The approximate value of the goods as mentioned in the licence was Rs. 2,088 and the validity of the licence was for a period of twelve months from the date of issue. But before the issue of the said licence, the petitioners had in the middle of June 1954 arranged with Messrs. Crystal Company, local agents and representatives of Messrs. Lyra Lead Pencil Company, Nuremberg, West Germany, for the purchase of 'Lyra' brand crayons. The petitioners stated that the said crayons were coloured crayons in twelve assorted colours - 12 crayons to a box and 12 boxes to a carton. On 14th June 1954, the petitioners wrote to the Assistant Collector of Customs for Appraisement, Calcutta, enclosing a carton of 'Lyre' brand crayons and enquiring as to the proper customs classification of the said crayons. On 3rd July 1954, a reply was given to the petitioners by the Assistant Collector of Customs for Appraisement, Calcutta, to the effect that 'Lyra' brand crayons were classifiable under item No. 45 (a) of the Indian Customs Tariff. It is worthy of note, however, that the letter contained a foot note which stated that the classification was provisional and was liable to revision in the light of examination of the goods at the time of importation. After having obtained the licence on 4th August 1954, the petitioners placed an order through Messrs. Crystal Company for importing 486 dozen boxes of 'Lyra' brand coloured Crayons. The order was confirmed in September, 1954. The petitioners opened an irrevocable letter of credit in favour of the manufactures through a bank, and on or about 10th January 1955 the goods arrived from Hamburg in West Germany to the port of Calcutta in India. The petitioners then field a Bill of Entry, through their clearing agents, under the provisions of the Sea Customs Act (Act VIII of 1878). On that Bill of Entry, an endorsement was made by the Assistant Collector of Customs which was to the following effect: - "Collector's order in File S. 6-140/55A. Goods assessable under item 45 (4) ICT and accept the licence produced. Declare number of pieces and length of the pencil both in words and Figures." The endorsement showed that the Assistant Collector of Customs instead of assessing duty under item 45 (a) was assessing duty under item 45 (4) of the Indian Customs Tariff. The petitioners felt aggrieved by this order, because the duty payable under item 45 (a) was 39 3/8 percent. ad valorem while the duty payable under item 45 (4) was "2 annas for every length of 7 1/2 inches or part thereof, or 66 2/3 percent. ad valorem, whichever was higher." The petitioners then represented their case to two successive Collectors of Customs, and on 26th April 1955, the Assistant Collector of Customs wrote to the petitioners to the following effect: "I am directed to advise that the decision on the merits of the assessment of these Lyra brand half-sized coloured pencils having been taken by Collector's predecessor and duly communicated to you by an endorsement on the reverse of the bills of entry in question, Collector does not see his way to interfere in the matter and that in case you feel aggrieved with the said decision, the proper course is to follow the appeal procedure prescribed under section 188 of the Sea Customs Act." The petitioners then appealed to the Central Board of Revenue by means of a communication dated May 14/17, 1955. The Central Board of Revenue dismissed the appeal on 12th October 1955, by the following order: "The goods have been correctly assessed to duty under item 45 (4), Indian Customs Tariff. The board, therefore, sees no reason to interfere with the order passed by the Collector of Customs, Calcutta." Thereafter, the petitioners field the present writ application by which they challenge the validity of the orders of the Assistant Collector of Customs, the Collector of Customs and the Central Board of Revenue on grounds which we shall presently state. The petitioners pray for the issue of appropriate writs for quashing the said order and also for directing the Customs authorities to deliver the goods to the petitioners on payment of duty under item 45(a) of the Indian Customs Tariff.;