B. N. KIRPAL, J. (Oral)

( 1 ) IN this petition filed under Article 226 of the Constitution the challenge is to the action of the respondents in not releasing the goods which had been imported and also to the levy of redemption fine and customs duty on the said goods.

( 2 ) THE petitioner is an undertaking of the Punjab State Government. The Canadian Hunger Foundation, Canada and one Canadian of Indian origin gifted machinery and equipment to the State of Punjab for setting up an exotic cattle breeding farm at Ropar.

( 3 ) THE then Chief Minister of Punjab wrote a letter dated 7th January 1976 to the Union Minister of Finance requesting for an order being passed under Section 25 (2) of the Customs Act, 1962 for exemption from payment of customs duty. Pending decision on the request of the State Government, the Central Government permitted provisional duty-free clearance of the machinery and equipment on an undertaking being given by the State Government that in the event of the duty being chargeable the same shall be paid.

( 4 ) THE machinery and equipment arrived at Bombay and were cleared by the petitioner in February 1976 and the same was transported to plant premises at Chandigar

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