The Reserve Bank of Indias rate, as we have pointed out, was Rs.
31.44.
The companynter filed by the respondents before the High Court, as also before this Court, does number indicate why the rate was fixed at Rs.
25.95, the rate fixed by the numberification dated 27th March, 1992 was Rs.
The question is whether the fixation of the rate of Rs.
The affidavits do number indicate that the prevalent Reserve Bank of India rate had been taken into companysideration.
On 29th April, 1992 the exchange the rate numberified by the Reserve Bank of India was one U.S. dollar equal to Rs.
Briefly stated, these are the facts The appellant purchased a companysignment of acrylonitrile from a supplier in the United States of America and, on 29th April, 1992, filed with the Customs authorities at Kandla the Bill of Entry in respect thereof.
31.44 on 27th March, 1992, with effect from 1st April, 1992, is arbitrary, principally, having regard to the fact that the Reserve Bank of Indias rate at the relevant time was Rs.
Thereby the writ petition filed by the appellant was dismissed.
It is companymon ground that the price indicated in the Bill of Entry reflects the true value of the companysignment.
The exchange rate fixed by the Reserve Bank of India is the accepted and determinative rate of exchange for foreign exchange transactions.
25.95, which is number disputed.
On 27th March, 1992 the respondents, acting in exercise of the power companyferred by Section 14 3 of the Customs Act, numberified the rate of exchange for the purposes of Section 14 at one U.S. dollar equal to Rs.
As aforestated, the writ petition was dismissed.
Strangely, the High Court, adverting to this companytention, stated, In the absence of any other material brought on record, it cannot be held that the rate of exchange by the Central Government under Section 14 3 i is arbitrary and it said this after numbering the companytention on behalf of the appellant that the Central Government rate was arbitrary being different from that fixed by the Reserve Bank of India.
25.95.
31.44.
For the purposes of customs duty the rupee equivalent of the price paid for the appellants companysignment was calculated at this rate.
