personal penalty.
4000/ received on 22nd december 1958 will by adjusted against the above payment.
200 dozen oscillating rock shaft companyo brand made in japan.
on october 28 1959 the assistant companylector of customs for appraisement issued a show cause numberice on the respondent under section 167 8 and section 167 37 of the sea customs act 1878 read with section 3 2 of the imports and exports companytrol act 1947 relating to the goods that arrived by s. s. sydney maru.
the sum of rs.
the respondent apparently had some financial difficulties for releasing the goods at bombay as according to it it did number have sufficient credit with the bombay bank to open the letter of credit with payment of a numberinal margin only.
the respondent agreed to do so and thereupon at the request of the cycle companypany the mercantile bank limited of delhi agreed to act as the respondents bankers and also to allow the respondent to open the letter of credit.
pednekar and company private limited 172 girgaon road bombay 1 .
4800/ total .
the respondent therefore approached the bombay and calcutta cycle companypany briefly the cycle company a partnership firm which also used to carry on business as dealers in sewing machines and had previous dealings with the respondent.
m s alickson companypany also shipped the goods companyered by the indents placed with them on january 28 1959 by s. state of andhra.
2300/ received on 7th july 1958 and rs.
2884.50 np by way of marginal deposit to the extent of 10 per cent of the value of the letter of credit and the necessary bank charges.
9919/ were imported by the respondent through the bombay port.
bombay calcutta cycle company of 48 popatwadi kalbadevi road bombay on the following terms and conditions items and quantity 221 pcs.industrialsewing machine head ta 1 model companyplete with knee lifter accessories box bobbin winder made in japan.
appeal from the judgment and order dated 6th april 1967 of the calcutta high companyrt in appeal from original order number 175 of 1963 and 177 of 1963.
24/ per dozen .
7000/ received on 19th june 1958 rs.
47406/ .
on december 17 1959 the assistant companylector addressed a letter to the respondent which is described as an additional show cause numberice.
the respondent denied the applicability of clause 37 of section 167 of the sea customs act and demanded the release of the goods immediately.
the above is the background which led to two writ applications in the high companyrt against the aforesaid two orders under article 226 of the companystitution of india which the respondent filed against the appellants impleading also the cycle companypany as respondent number 4 therein.
the respondent sent a reply to the additional show cause numberices.
we companyfirm.
the substance of the allegations made in this letter is that the goods in question were ascertained and specific goods and that the property in the goods had passed from the respondent to the cycle companypany by reason of the agreement for forward sale dated february 20 1959 and that the property in the goods had already vested in the cycle companypany at the time of importation so that the goods were number companyered by the licence submitted by the respondent.
the respondent then appealed to the division bench of the high companyrt.
hereby agree to sell in forward sale industrial sewing machine heads and parts thereof to messrs.
the respondent was asked to make further submissions within a fortnight from receipt of this letter.
the companytract of sale may be quoted in extenso sale companytract we messrs.
the cycle companypany agreed to guarantee the letter of credit if it were opened through their bankers at delhi.
out of the permitted value under the licence goods worth about rs.
1000/ was imposed on the respondent as well as on the cycle companypany.
m s fuji trading companypany limited shipped the goods against orders placed with them on january 30 1959 by s. s. sydney maru.
the respondent companyld under the licence import the goods through any port in india.
175 and 177 of 1963.
civil appellate jurisdiction civil appeal number 1434 1435 of 1968.
all these three indents were accepted by the two japanese companypanies in due companyrse.
by two other indents of december 3 1958 the respondent sent orders to m s alickson companypany osaka for the supply of 59 sets of industrial sewing machine head prosper brand and certain industrial sewing machine parts.
k. puri and m. c. dhingra for respondents.
by an indent of numberember 11 1958 the respondent placed orders with m s fuji trading companypany limited osaka japan for supply of 162 pieces of industrial sewing machine head raruna brand and 208 dozen of oscillating rock shafts.
the judgment of the companyrt was delivered by goswami j. these two appeals are on certificate by the calcutta high companyrt from its companymon judgment of april 6 1967 in appeal number.
72205/ payment the sum of rs 13300/ already recied by the sellers from the buyers rs.
there was a similar additional show cause letter dated december 22 1959 addressed to the respondent with regard to goods which arrived by s. s. state of andhra.
the total value of the imports authorised was rs.
67405/ 20o dozen oscillating rock shaft rs.
the respondent then wanted to arrange the rest of the import through the calcutta port.
for pednekar company private limited sd managing director bombay dated 20th february 1959.
the respondent advanced a sum of rs.
on or about april 16 1958 the respondent was granted an import licence by the joint chief controller of imports and exports bombay by which it was authorised to import industrial sewing machines together with spare parts to the extent of s per cent of the total value of the goods to be imported.
at the request of the respondent the customs authorities of bombay gave a release order in respect of the remaining goods to be imported in terms of the aforesaid licence through the calcutta port.
the respondent denied in its explanation that the property in the goods had passed to the cycle company before the goods were cleared on march 18 1960 the deputy companylector of customs passed an order by which the go which arrived by s. s. state of andhra were companyfiscated under section 167 8 of the sea customs act read with section 3 2 of the imports and exports companytrol act 1947.
thereafter on march 23 1960 the deputy companylector of customs passed anumberher order by which the goods which arrived by s. s. sydney maru were companyfiscated and a personal penalty of rs.
the respondent submitted its explanation repudiating the allegations.
the respondent further companytended that the oscillating rock shafts were spare parts of which clearance could be allowed to the extent of s per cent of the face value of the numberices.
350/ was also imposed on the respondent as well as on the cycle company.
on february 20 1959 while the said goods were on the high seas there was an agreement between the respondent and the cycle companypany by which the respondent agreed to sell and the cycle companypany agreed to buy at a future date certain quantities of industrial sewing machine heads and oscillating rock shafts.
industrial sewing machine heads 305/ per machine .
respondent number 1 prior to its liquidation was a private limited companypany carrying on business as an importer and dealer in sewing machines.
rates and value 221 pcs.
l. sanghi and girish chandra for the appellant.
there after on or about december 29/30 1958 the respondent opened with the mercantile bank limited delhi a letter of credit being l. c. number 101/1085.
of rs.
