MATHUR, J. - (1.) THE petitioner purchased two consignments of old unripped completely premutilated and fumigated original C. A. W. Woollen hosiery rage from M/s. Auckland Rag Co. Ltd. , Kagans, Newzealand and one consignment of same goods from M/s. Compagnie Verdier-Dufor, Paris, France. THE goods aforesaid were dispatched from respective foreign ports before 29. 2. 1992 and the payment too was made to foreign suppliers by State Bank of Bikaner and Jaipur through its foreign counter parts on or before 29. 2. 1992 in accordance with the procedure applicable.
(2.) THE facts as averred in petition for writ, the petitioner, a company registered under Indian Companies Act purchased the consignment of woollen hosiery rags during currency of export and import policy of Government of India (hereinafter referred to as ``exim policy"), which remained in force from 1. 4. 1990 to 31. 3. 1993, according to which the "official rate" of foreign exchange conversion (hereinafter referred to as "forex conversion") was available to all the persons importing goods under open general license as well as actual users. At the time when the petitioner placed order for consignment concerned there was only one rate of forex conversion viz. the official rate. THE petitioner understood that the import of all the woollen rags would be governed by official rate of forex conversion. THE Government of India after presentation of union budget for the year 1992-93 created two different rates of forex conversion, known as official rate and market rate. THE grievance of the petitioner is that the Collector of Customs, Mumbai assessed the value of the goods for purpose of levying the custom duty at the market rate of forex conversion which is quite higher than the official rates of forex conversion. While giving challenge to the assessment of value of goods for the purpose of levying the custom duty at the market rate, the contention of counsel for the petitioner is that respondent Collector of Customs should be estopped from assessing the value of goods for levying custom duty as the entire transaction with regard to purchase of woollen rags by foreign suppliers was under the Exim policy of Government of India existing from 1. 4. 1990 to 31. 3. 1993 and in the said policy only official rates of forex conversion was available. The petitioner acted upon the representation made by Government of India under the Exim policy then existing with a belief that the assessment of value of goods shall be made on official rate for determining custom duty, therefore, respondent Collector of Customs by virtue of principles of promissory estoppel is required to be estopped to assess value of goods on market rate of forex conversion. It is also contended by counsel for the petitioner that entire transaction completed on or before 29. 2. 1992, therefore, the market rate of forex conversion which came in force on 1. 4. 1993 could not be applied while determining the value of goods for the purpose of charging custom duty. According to counsel for the petitioner the market rate came in force after presentation of union budget for the year 1992-93 i. e. w. e. f. 1. 4. 1993. The counsel has supported his contention by placing reliance on the decision of Hon'ble Supreme Court in the case of Indian Acrylics vs. Union of India & Anr. reported in (2000) 2 SCC 678, wherein the Apex Court reversed decision of Division Bench of Punjab & Haryana High Court [indian Acrylics Ltd. vs. Union of India, 1993 (68) E. L. T. 772 (P&h)]. Learned Division Bench of Punjab & Haryana High Court held that the value of importing goods for the purpose of charging custom duty is to be determined under the provisions of Customs Act, 1962 and the Exim policy of Central Government is nothing to do in such determination. A reply to the writ petition is filed on behalf of Union of India and respondent Collector of Customs. The stand of the respondents is that Exim policy of Government of India is nothing to do with determination of custom duty which is required to be assessed according to the provisions of Customs Act, 1962. It is emphasised by the respondents that the provisions of Section 14 of the Customs Act, 1962 prescribes for valuation of goods for purpose of assessment. According to it a duty of custom is chargeable on any goods by reference to their value, the value of such goods shall be deemed to be the price at which such or like goods are ordinarily sold or offered for sale for delivery at the time and the place of importation or exportation, as the case may be, in the course of international trade where the seller and the buyers have no interest in the business of each other and the price is the sole consideration for sale or offer for sale. It further provides that the price of the goods shall be calculated with reference to the rate of exchange as in force on the date on which a bill of entry is presented under Section 46 or a shipping bill or bill of export, as case may be, presented under Section 50. The rate of exchange as prescribed under Section 14 of the Act of 1962 means the rate of exchange determined by Central Government or ascertained in such manner as the Central Government may direct for the conversion of Indian Currency into foreign currency or foreign currency into an Indian currency. According to counsel for the respondents the Collector of Customs made assessment of the value of goods imported by the petitioner on basis of forex conversion rate prescribed by the Central Government in accordance with SEction 14 of the Act of 1962 as it was existing on the day a bill of entry was presented under Section 46 of the Act of 1962. Heard counsel for the parties. The contention of counsel for the petitioner is that the petitioner entered into the transaction for import or woollen rags with foreign suppliers in view of export and import policy existing from 1. 4. 1990 to 31. 3. 1993 according to which only one official rate of forex conversion was required to be applied for determining value of goods for the purpose of charging custom duty. On basis of Exim policy referred above counsel for the petitioner pressed for application of principles of promissory estoppel to estop respondent Collector of Customs, Mumbi from assessing value of imported goods by applying market rate of forex conversion. The determination of custom duty is required to be made in accordance with the provisions of Customs Act, 1962. Section 14 of the Act of 1962 pertains to valuation of goods for the purpose of assessment. Sub-sections (1) and (3) of Section 14 of the Act of 1962 which are relevant for adjudication of present controversy read as under:-      " 14. Valuation of goods for purposes of assessment.- (1) for the purposes of the [customs Tariff Act, 1975], or any other law for the time being in force whereunder a duty of customs is chargeable on any goods by reference to their value, the value of such goods shall be deemed to be - the price at which such or like goods are ordinarily sold, or offered for sale, for delivery at the time and place of importation, as the case may be, in the course of international trade, where the seller and the buyer have no interest in the business of each other and the price is the sole consideration for the sale or offer for sale: [provided that such price shall be calculated with reference to the rate of exchange as in force on the date on which a bill of entry is presented under section 46, or a shipping bill or bill of export, as the case may be, is presented under section 50. ]. (3) For the purposes of this section- (a) "rate of exchange" means the rate of exchange- (i) determined by the Central Government, or (ii) ascertained in such manner as the Central Government may direct, for the conversion of Indian currency into foreign currency or foreign currency into Indian currency; (b) "foreign currency" and "indian currency" have the meanings respectively assigned to them in the Foreign Exchange Regulation Act, 1973. ]"
(3.) THE valuation of goods for the purpose of determination of the duty of custom on any goods is required to be assessed under the Act of 1962 in accordance with the provisions of Section 14 and Exim policy is nothing to do in this regard. THE valuation of such goods are required to be assessed on basis of forex conversion rate as in force on the date on which a bill of entry is presented before the Custom Commissioner in accordance with the provisions of Section 46 o the Act of 1962. THE Central Government is having absolute powers to determine such forex rate. In present case the Collector of Customs determined custom duty chargeable on the goods imported for the petitioner by applying the forex rate in force on the date bill of entry was presented under Section 46 of the Act of 1962. No error, therefore, was at all committed by the respondents in assessing the value of goods for the purpose of determination of custom duty chargeable from the petitioner. The application of export and import policy in present set of facts is misconceived, therefore, the contention of counsel for the petitioner with regard to application of promissory estoppel is also having no worth. The export and import policy is having no role to play while assessing value of goods imported and which is chargeable for duty of customs. The second contention of counsel for the petitioner that the market value as adopted by the Collector of Customs came into force on 1. 4. 1990 to 31. 3. 1993 whereas the entire transaction completed on 29. 2. 1992 i. e. prior to coming into force the market rate of forex conversion and as such the same could not be made applicable in present controversy, is also not having any force in view of the fact that value of imported goods was assessed in accordance with the provisions of Section 14 of the Act of 1962 and not on basis of export and import policy. The day relevant for such calculation is the day on which bill of entry is presented under Section 46 of the Act of 9161. ;