M/S Pee Jay International v. Commissioner Of Customs

   
   
 

  !

"#$ %$&'(')*$+#$,-$./0
 

   

      

 * 23  
 3 23  
   .$($)#* . "4,5")")("60%7&"#$ .#5$"++$66")#  . 5".")$#5'0%7&"#$ .#5$.$(+)%$)#')

")% . ,'#8"60%7&"#$ .#5$.$(+)%$)#')    "9$(5')%"6  5'(.%$.:'66%'(+($ #:"++$"6(-$".')4
( 

")%  0"(&,,);<$(#')( 6":")% "&#(".$')767$% :$7$.0#5$ "&#(5"7$-$$)$=#."&#$% .,
 

  5$"(($(($$'(')"++$"6"4"')(##5$.%$.%"#$%

+"(($%')++$"6 1 > 1?
<( 0-8
<(#,(0=&'($$.7'&$ "=++$66"#$.'-<)"60$: $65'

.(5.#02#5$.'-<)"62!."'(')4#5$

66:')4(<-(#")#'"6;<$(#')( 6":* @ "!

A5$#5$.%<#8&")-$%$,")%$% .,")',+.#$.:5'( )#"+".#8# ."<%&,,'##$%-8")$=+.#$.B

-!

A5$#5$.  %$,")%  "4"')(#  #5$  "++$66")#  '(  (<(#"')"-6$ :5$) %$,")%"4"')(#'%$)#'&"668('#<"#$% +$.()(5"(

  "6.$"%8-$$)%.++$%B

&!

A5$#5$.$=#$)%$%+$.'% 6','#"#')&")-$')7C$%0') 7'$: 7".'<(9<%4,$)#( #5'()2-6$
<.#B

%!

A5$#5$.  ',+<4)$%  .%$.  '(  +$.7$.($  ")%  &)#.".8 # .$&.%BD  3$".)$%  &<)($6  .  #5$  "++$66")#  (<-,'##$%  #5"#  #5$ "++$66")#+<.&5"($%)$ (&.'+  1 %"#$% 

., E($)'=+.#(0"6")%5". 5$(",$:"(<#'6'($% .%'(&5".4')4 %<#86'"-'6'#8)4%(',+.#$%-8#5$"++$66")#7'%$'66( )#.8%"#$%

")% >  5$%$+".#,$)# ')%')4#5"# -#"')$%-8 E($)'=+.#(0"6")%5".0:5'&5:"(+<.&5"($%-8#5$"++$66")#0:"( -#"')$%-8<(')4&$.#"') .4$%%&<,$)#(0&")&$66$%#5$(",$ 5$.$"

#$.0 (5:&"<($)#'&$:"('((<$%##5$"++$66")# +.+(')4#.$&7$.#5$ -$)$ '# %<#8+"8,$)#"7"'6$% -8#5$"++$66")# )#5$-"('( #5"#

 5$&)#$)#') #5$"++$66")#'(#5"#:5$) :"(+<.&5"($% -8'#")%#5$%"#$):5'&5'#:"(<#'6'($% .+"8,$)# %<#80'#:"("7"6'% (&.'+0  5$)&$0  #5$  "++$66")#  &"))#  -$  ,"%$  6'"-6$  .  ")8  "&#')  5$ %$+".#,$)#,"8#"C$"&#')"4"')(##5$+$.()0:54# '((<$%-8 (<-,'##')4  .4$% %&<,$)#( 5$ "%9<%'&"#')4 "<#5.'#8 &) '.,$%  #5$ %$,")% 5$.%$.:"(<+5$6%')"++$"6-8#5$ '.(#"++$66"#$"<#5.'#8"( :$66"(#5$.'-<)"6 A5'6$  .$ $..')4  #  #5$  .%$.  +"(($%  -8  #5$  '.(#  "++$66"#$ "<#5.'#806$".)$%&<)($6 .#5$"++$66")#(<-,'##$%#5"#"(+$&'

'& ')%')4 5"(-$$).$&.%$%#5"##5$.$:"(),"#$.'"6).$&.%#(5:#5"##5$ "++$66")#"-$##$%.&))'7$%:'#5$=+.#$.# ."<%<6$)#68-#"')  (&.'+  5$  "++$66")#  5"%  +<.&5"($%  .$$68  #.")( $."-6$    (&.'+  ')

  -)"

'%$,"))$. 5$.'-<)"6"6(.$&.%$%" ')%')4#5"##5$.$".$) "66$4"#')( ,'(.$+.$($)#"#'). ."<%0&66<(').(<++.$((') "&#( )#5$+".# #5$"++$66")#E',+.#$. $ <.#5$.(<-,'##$%#5"#)#5$-"('(  #5$"

.$("'% ')%')4.$&.%$%') "7<. #5$"++$66")#0+$)"6#8:"(($# "('%$ )&"($0#5$"++$66")#5"%-$$)"

.%$%++.#<)'#8 5$".')4-$ .$ &")&$66"#') 4.")#$%##5$+$.()0 .,:5,5$5"%+<.&5"($%0 #5$"++$66")#&<6%5"7$."'($%6$4"6'((<$(#%$ $)%#5$&"($"(<6#',"#$68 )"&&<)# &")&$66"#') 0:5'&5:"('((<$%#"#5'.%+".#80 ., :5,#5$"++$66")#5"%+<.&5"($%#5$(",$0#5$"++$66")#&"))#-$,"%$ #(<

$. #:"("-)"

'%$+<.&5"($ .&)('%$."#') $68')4<+)#5$ 9<%4,$)#    )2-6$  #5$  <+.$,$ 
<.#  ') 
,,'((')$.   
<(#,(

,+.#(!0,-"87 '&)#$.+.'($(0 G

G!3 
!0#5'(&<.# ') 
,,'((')$. 
<(#,(0,.'#(".7 H"66"-5 $('4).%<&#(0 /

>!3/ !I 
,,'((')$. 
<(#,(7 3$"%$.H"67$(3#% 0

/

G!3 > !0
 

1J
,,'((')$.

<(#,(0,.'#(".7 $.#'&5$,)%'"0%$&'%$%) /

>I
   >J
,,'((')$. 
<(#,( .$7$)#'7$!,.'#(".7  E( $$-$$ ".C$#')47# 3#% 0%$&'%$%)  >")% E(5$.<3"6"6
5")%7 #"#$ ".8")"")%")#5$.0

!30'#:"((<-,'##$%#5"#') &"($#5$-$)$ '#<)%$. +<.&5"($%-8"+$.() .&)('%$."#')5"% -$$)<#'6'($%-$ .$'#:"(&")&$66$%0#5$',+.#$.&"))#-$,"%$6'"-6$ .

")8"&#') &#')&")-$#"C$)"4"')(##5$+$.():5&,,'##$% ."<% $ <.#5$.(<-,'##$%#5"#')#5$&"($ #5$"++$66")#0 '#($6 :"()#"

.4$%%&<,$)# $ <.#5$.(<-,'##$%#5"#$7$)#5$6".4$.$)&5 #5$ .'-<)"6')')")'
$,$)#3#% 7 
,,'((')$. 
<(#,(0K")%6"0

F>!3 / .' ?5,% !5$6%#5$(",$+')')

 )#5$#5$.5")%06$".)$%&<)($6 .#5$.$(+)%$)#0:5'6$ .$ $..')4#" '7'(')$)&59<%4,$)# #5'(
<.#').'$)%(."%')4
 7 )') )%'"0

1/!3

! 5$.$')"

#$..$ $..$%#"( .'$)%(."%')4
 2(&"($ (<+."!0(<-,'##$%#5"#"66#5$'((<$((<45## -$."'($%-8#5$"++$66")#:$.$&)('%$.$%#5$.$')")%'#:"(+')$%#5"# -<8$.  .,#5$+$.():55"%-#"')$%#5$(",$-8(<-,'##')4

.4$%%&<,$)#(0'("6(6'"-6$ ".6'$..%$.+"(($%-8#5'(&<.#') <)9"6 5:"3','#$%7 
,,'((')$. 
<(#,(")%
$)#."6=&'($

$65'

H!0".'%"-"%0 >

1!3 G !:"(.$ $..$%#0:5$.$)#5$ +.')&'+6$ @-<8$.-$:".$D0+<.&5"($. :"(5$6%6'"-6$"('#:"( 5'(%<#8#"(&$.#"'):5$#5$.#5$(&.'+-$')4+<.&5"($%-8'#:"( .4$%.

)# )#5$&"($')5")%0#5$"++$66")#"(:$66&<6%5"7$,"%$$);<'.8 ., #5$%$+".#,$)# 5$.$'()#5')4).$&.%#(<44$(##5"##5$"++$66")#$7$. ,"%$")8$);<'.8 5$.%$.+"(($%-8#5$.'-<)"6%$()#&"66 .")8 ')#$.

$.$)&$ (<-(#")#'"6;<$(#') 6":".'($( / $".%6$".)$%&<)($6 .#5$+".#'$(")%+$.<($%#5$+"+$.

-C 5$  "&#(0  :5'&5  ".$  )#  ')  %'(+<#$  ".$  #5"#  #5$  "++$66")# +<.&5"($% &.'+  1 %"#$%  ., E($)'

=+.#(0"6")%5". #:"(<#'6'($%#%'(&5".4$%<#86'"-'6'#8)#5$4%( ',+.#$%  -8  #5$  "++$66")#  7'%$  '66    )#.'$(  %"#$% 

  ")%

>   .$#5"))$8$".#5$.$"

#$.0 '.$&#.$)$."6 .$'4) ."%$&")&$66$% '((<$%# E($)'=+.#(0"6")%5".7'%$.%$. %"#$%   (".$(<6##5$.$ 0#5$"++$66")#:"('((<$%(5:&"<($ )#'&$%"#$% 

 .:'#5%.":')4#5$-$)$ '#("6.$"%8"7"'6$% )

F #5$-"('( +<.&5"($%-8#5$"++$66")#  #$.&)('%$.')4#5$.$+68

'6$%-8#5$"++$66")#0#5$"%9<%'&"#')4"<#5.'#87'%$.%$.%"#$%  F F &) '.,$%%$,")% #5$&<(#,(%<#8")%#5$(+$&'"6"%%'#')"6%<#80 -$)$ '# :5'&5:"("7"'6$% -8#5$"++$66")#)#5$-"('(  +<.&5"($%-8'# ., E($)'=+.#(0"6")%5". )"%%'#')0'#:"(5$6% #5"#  #5$  4%(  ',+.#$%  -8 #5$  "++$66")#  :$.$  6'"-6$  .  &) '(&"#')0 5:$7$.0"(#5$4%(:$.$)#"7"'6"-6$05"7')4"6.$"%8-$$)&6$".$% .

5,$&)(<,+#')0.$%$,+#') ')$ 
 00E?:"(',+($%')6'$<

&) '(&"#') $.()"6+$)"6#8)#5$"++$66")#:"("6(',+($% )"++$"6

'6$%-8#5$"++$66")#"4"')(##5$"

.$("'%.%$.-$ .$#5$
,,'((')$.

++$"6(!0#5$%$,")% %<#8:"(&) '.,$%05:$7$.0+$)"6#8:"(($# "('%$  5$ 
,,'((')$.  ++$"6(!0  :5'6$  ($##')4  "('%$  #5$  +$)"6#80 .$&.%$%#5$ 66:')4 ')%')4(* @(.$4".%(#',+('#') +$)"6#8 ( 0GF0F E?")%(

0E?)#5$"++$66")#  ")% <)%$.$&#')

")% $&#')

#5$&#.$(+$&#'7$680 ')%#5"##5$.$'()#5')4 )  .$&.%  #  +.7$  ')  ")8  :"8  #5"#  #5$8  5"7$  "-$##$%  . &))'7$%:'#5#5$$=+.#$.(# ."<%<6$)#-#"')#5$  (&.'+(  :$7$.0  '#  '(  )  .$&.%  #5"#  #5$  "++$66")#(  5"% +<.&5"($%#5$ .$$68#.")( $."-6$ (&.'+(')#5$-)" '%$ ,"))$.")%<#'6'($%#5$(",$#:".%($=$,+#') %<#8 D > 5$"++$66")# '6$% <.#5$."++$"6-$ .$#5$.'-<)"6 7$)#5$ .$7$)<$"6(+.$ $..$%"++$"6"4"')(##5$.%$.+"(($%-8#5$
,,'((')$.

++$"6(! )$ $,-$. #5$.'-<)"6+')$%#5"##5$"++$"6(:$.$6'"-6$ #  -$  %'(,'(($%  "++68')4  #5$  +.')&'+6$    @-<8$.  -$  :".$D  :$7$.0 ")#5$. $,-$.+')$%#5"##5$"++$"6 '6$%-8#5$"(($(($$:"(.$;<'.$%#

1 -$"66:$%0:5$.$"(#5$.$7$)<$2("++$"6:"(,$.'#6$(( 5$,"##$.:"( .$ $..$%#-$&)('%$.$%-8#5'.% $,-$.)%'

$.$)&$ +')')  #$.

#5$ ,"##$. :"(  &)('%$.$%   -8 #5'.%  $,-$.0 #5$ "++$"6  '6$%  -8 #5$ "++$66")#"(:$66"(#5$%$+".#,$)#:$.$.$9$&#$% 5$%$+".#,$)#:"( ."'(')4#5$'((<$.$4".%')4 6$78 +$)"6#80:5$.$"( #5$"++$66")#:"( &)&$.)$%"-<##5$%$,")% %<#80"(+$)"6#85"%-$$)($#"('%$ 

)H"66"-5 $('4).%<&#(2&"($0 (<+."!0#5'(&<.#%'(,'(($% #5$"++$"6 '6$%-8#5$.$7$)<$')767')4'%$)#'&"6'((<$ ')%')4#5"##5$ ',+.#$.#5$.$'):"()#"+".#8##5$ ."<%")%#5$.$:"(&"#$4.'& ')%')4 #5"#5$5"%+<.&5"($%  .,#5$+$),".C$#')-)"

'%$-$6'$ '#( -$')44$)<')$ $6'")&$:"(+6"&$%<+)")$".6'$.9<%4,$)# #5'(
<.# ') 3$"%$.H"67$(3#% 2( &"($ (<+."! 5$.$"6(0(','6". ')%')4(:$.$ .$&.%$% 5$(",$7'$::"(6"#$. 66:$%')$.#'&5$,)%'"")% E(

$$-$$ ".C$#')47# 3#% 2(&"($( (<+."!

5$9<%4,$)# #5'(
<.#')  <)9"65:"3','#$%2( &"($

(<+."!'(%'(#')4<'(5"-6$) "&#("(')#5"#&"($0#.")( $..$6$"($"%7'&$( '((<$%"4"')(# (&.'+:$.$ .4$%")%$7$) (:$.$"6( .4$% 5$.$:"() ')%')4.$&.%$%-8#5$.'-<)"6.#5$"<#5.'#'$(')#5"#&"($ #5"##5$"(($(($$"&#$%-)"

'%$ 5$$".6'$.9<%4,$)#( #5'(&<.#') H"66"-5  $('4)  .%<&#( ")% 3$"%$.  H"67$(  3#% 2( &"($(  (<+."!  :$.$ %'(#')4<'(5$%:5'6$.$&.%')4#5"##5$',+.#$.')#5($&"($(5"%"&#$% -)"

'%$ "."4."+5 F#5$.$ '($=#."&#$%-$6:* @ F A$,"8"6(,"C$"-.'$ .$ $.$)&$##5$9<%4,$)#(

#5'(  &<.#  ') 
  

  (<+."!  ")% 
  (<+."!0:5$.$')" ')%')4:"(&6$".68.$&.%$%#5"#

/ #5$',+.#$.5"%"&#$%-)" '%$:5'&5 ')%')4:"("

'.,$% D ).'$)%(."%')4
 2(&"($ (<+."!0#5$"(($(($$2("++$"6 :"(%'(,'(($%:5'6$.$68')4<+)#5$$".6'$.9<%4,$)# #5'(&<.#') <)9"65:"3','#$%2(&"($ (<+."!(+$&'

'&"668)#'&')4#5"##5$.'-<)"6 ')#5"#&"($5"%.$&.%$%" ')%')4#5"#-)"

'%$(5"%)#-$$)$(#"-6'(5$% -8#5$"(($(($$05$)&$0#5$"(($(($$:"()#$)#'#6$%#+6"&$.$6'")&$<+) #5$9<%4,$)# #5'(&<.#')3$"%$.H"67$(3#% 2(&"($ (<+."! ).'$)%( ."%')4
 7 )') )%'"0 

F!31F !0#5$$".6'$.

9<%4,$)#') <)9"65:"3','#$%2(&"($ (<+."!:"( 66:$% 

 )
,,'((')$. 
<(#,( .$7$)#'7$!7 "

6"#$=#'6$( )%'".'7"#$3','#$%")%#5$.(0

>!



 G"(:$660'#:"( <)% #5"#(+$&'"6',+.#6'&$)&$()#5$-"('( :5'&5#5$-<8$.5"%&6"',$%#5$ -$)$ '#:$.$0') "&#0 .4$%%&<,$)#( #:"(<)%$.#5$($&'.&<,(#")&$(0 #5$,"=',  :"("++6'$% )&"($(0:5$.$(&.'+'#($6 '(

.4$%0#5$ "&#&<6%-$ <)%<#')&"($#5$-<8$.($$C(#7$.'

8#5'(

.,#5$

'&$'((<')4#5$(&.'+ :$7$.0'#'()#+(('-6$')"&"($:5$.$ #5$(&.'+'(4$)<')$0-<# .#5$+<.+($ '((<")&$#5$.$ 0#5$+".#8 &)&$.)$%,"85"7$<($%(,$ .4$%%&<,$)#(

(','6".'((<$:"(&)('%$.$%-8" '7'(')$)&5 #5'(
<.#')  E(5$.<3"6"6
5")%2( &"($ (<+."! #:"("&"($0:5$.$ <)%$.".8")"H"6<$%%$%"=&#0  0"+<.&5"(')4%$"6$.'($)#'#6$% #4$#')+<##"=&.$%'#)+.%<&#') "(#"#<#.8 ., 5$&6"',:"( (<45##-$%$)'$%-8#5$%$+".#,$)#:5'6$56%')4#5"##5$(#"#$,$)# ,"%$')#5$ .,:"()#&..$&#"(#5$($66')4%$"6$.5"%)#+"'%#5$#"=0

.:5'&5#5$&$.#'

'&"#$:"('((<$% 5'(&<.#+')$%#5"#6'"-'6'#8&")-$

"(#$)$%)"+$.()0:5$'#5$."&#( ."<%<6$)#68.'("+".#8##5$

G &66<(').&))'7")&$:'#5#5$

$)%$. $)<')$)$(( #5$&$.#'

'&"#$ &")-$$=",')$%-8#5$"<#5.'#8 )&"($ "6('#80"&#')(5<6%-$#"C$) "4"')(##5$($66')4%$"6$.(0$=&$+#')#5$&"($ +6$" ."<%0&66<(').

&))'7")&$-$#:$$)#5$+".#'$( $6$7")#+"."(#5$.$ ".$$=#."&#$%-$6:*




          

    

            

                   

        

          

      

    



            ! "# $%& '

    

           

    

  

       

   

   

             

          

                        

     (& () $   *               '

        



        

+    #     

     #          

    

  #    

>   

  

            '

     ,     



           ,                         -  

   

  .                    

  ,

   , 

                            

    ,

    ! "# $%& 

                        '

                                   

     

      

      '

    ,       

  

            

   

            

                 ! "# $%&  

                                     

+      #+    /  ,    

  0

  (*               

         

             

    12341234       

          

     

  (.             

   

    !   '

      56   

      

    

  '

    '

   '



"9$(5')%"6!

<%4$  ".')%$.')45'%5<!

<%4$ $+#$,-$./0 ,C A5$#5$.(+$"C')4E.$"()$%*

$(E A5$#5$..$+.#"-6$*

$(E