High Court Of Delhi
R.C.FABRICSPRIVATE LIMITED - Appellant
Versus
UNION OF INDIA - Respondent
Civil Writ 3537 of 1990
Decided On : 10/17/1994
( 1 ) THIS is a writ petition whereby the petitioner, inter alia, seeks a direction to the respondents for release of the consignment of polyester fabric imported by it against duty free advance import licence No. PK 3297494 and covered by Bill of Entry No. 151684 dated August 16,1990 without payment of demurrage, ground rent and container charges of the fourth respondent Central Warehousing Corporation and for payment of damages and interest thereon on the ground that the goods were detained by the custom authorities viz. second and third respondents, illegally and unauthorisedly at the Container Freight Station, Patparganj of the fourth respondent. Briefly stated the facts giving rise to this writ petition are as follows:
( 2 ) THE petitioner deals in export of polyester shorts. He is said to have received export orders from Hongkong for the supply of 1,00,000 pieces and 60,000 pieces of polyester shorts on October 9,1989 and November 3, 1989 respectively. It is claimed that the goods were exported to the foreign buyer, who remitted the requisite foreign exchange. On January 2, 1990 the petitioner applied to the Joint Chief Controller of Imports and Exports for advance import licence for the import of duty free polyester fabric under Chapter XIX of the Import Policy for the period AM 1989-91. On January 31,1990 the petitioner was issued Duty Exemption Entitlement Certificate (for short "deec") book No-008053 and duty free advance import licence No. P/k/3297494. Under the Advance licence the petitioner was allowed to import 80,000 meters of 100% polyester fabric of CIF value of Rs. l6,16,000. 00 as per the following details:
1. Width-150 Cms. 2. Denier-150-300 3. The import was subject to the condition that the petitioner would export 1,60,000 pieces of shorts made out of the imported 100% polyester fabric of the aforesaid denier of FOB value of Rs. 24,48,000. 00. In accordance with the aforesaid policy all imports under export obligation are duty free.
( 3 ) THE petitioner claims to have fulfilled the export obligation by exporting shorts of FOB value of Rs. 24,51,000. 00. In order to avail the facility of duty tree import under the advance licence, the petitioner placed order for importation of polyester of CIF value amounting to Rs. 62,61,120. 00. After arrival of the consignment at Container Freight Station, Patparganj, belonging to the Central Warehousing Corporation, which was covered nder the bill of entry No-151684 dated August 16,1990 the petitioner sought duty free cleamace of the same. Some percentage of the goods were examined and measured by the customs authorities and as a result thereof the goods were seized under Section 110 of the Customs Act,1962 in the belief that they were liable to be confiscated on the ground of misdeclaration. The petitioner requested for adjudication on merits and waived the issue of show cause notice and personal hearing to him. The Asstt. Collector of Customs, the adjudicating authority, confiscated the goods and gave an option to the petitioner to redeem the same on payment of redemption fine of Rs. 25,000. 00 and also imposed a personal penalty of Rs. 5,000. 00. It is alleged in the writ petition that this order was passed on September 21,1990 and on the same day the petitioner deposited the required sunn of Rs. 30,000. 00 vide challan Annexure IX to the writ petition. It appears that the assertion of the petitioner that the order was passed by the Assistant Collector of Customs on September 21,1990 is not correct as by a subsequent application, C. M. No-959 of 1991, filed by the petitioner, it was revealed that the adjudication order was passed by the Assistant Collector of Customs on January 10/15,1991. Copy of this order is Annexure B to the application. It is apparent from the order that 10% of the goods were examined on September 3, 1990 in the presence of the clearing and handling agent of the petitioner and Superintendent Customs, when it was found that the
REFERRED TO : Board of Trustees of the Port of Bombay v. Indian Goods Supplying Co.
The Trustees of Port of Madras v. Mis. Aminchand Pyarelal and Ors.
S.K. Nayyar and Ors. v. Collector of Customs
Singh Radio and Electronics v.Collector of Customs
Relied on : Trishul Impex v. Union of India and others
Sundeep Industries and Anr. v. Collector of Customs, New Delhi and others
Sewing Systems Pvt. Ltd. v. Union of India
Distinguished : Board of Trustees of the Port of Bombay v. Indian Goods Supplying Co.
M/s.Kavita Trehan and another v. Balsara Hygiene Products Ltd.
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