V.T. Raghavachari, Member (J)

1. In respect of import of certain quantity of Pakistani Cotton, the Government of India, under an ad hoc exemption order No. 164 dated 31-3-1975, granted exemption from duty from so much as was in excess of 15% ad valorem, subject to a certain condition. The said import was canalised through the Cotton Corporation of India, the cotton to be imported for use of various mills who are the other respondents in this batch of appeals. A quantity of 66,701 bales out of the quantity covered by the abovesaid exemption order had been cleared on payment of 15% import duty in terms of the said order. Subsequently, in response to another letter dated 24-10-1975 of the Ministry of Commerce, the Government; passed another ad hoc exemption order dated 11-11-1975, whereunder full exemption was granted with reference to 1,20,354 bales consisting of 66,701 bales already cleared as well as 53,653 bales which had been imported but for which duty had not been paid, as the said goods had been stored in the Bonded Warehouse.

2. With reference to the quantity for which duty had already been paid at 15%, the Collector of Customs Ahmedabad, under orders dated 22-12-76 and 29-1-77, held that the assessment in respect thereof had been made erroneously in view of the order dated 11-11-1975. He consequently ordered refund of the duty already collected. It is admitted that duty so ordered to be refunded had in fact been refunded in about March or April 1977, the refunds having been received by the various Mills who are respondents to this batch of appeals, i.e. respondents except the Cotton Corporation of India.

3. Subsequently, the Government of India issued a show cause notice dated 8-10-1982 under Section 131(3) of the Customs Act, 1962. It was mentioned therein that the Central Government was tentatively of the view that ad hoc exemption order No. 442 dated 11-11-1975, could not be applied to the goods which had been cleared earlier in terms of ad hoc exemption order No. 164 dated 31-3-1975. It was accordingly proposed to set-aside the two orders of the Collector earlier mentioned and to restore the assessment as originally made. This show cause notice had been issued to the Cotton Corporation of India, as well as the various mills which had received the refund. It is the proceedings initiated under the said show cause notice that, on transfer to this Tribunal, are being dealt with as appeals and are being disposed of under this order.

4. We have heard Shri Vineet Ohri, SDR for the department as well as Shri J.R. Gagrat, Advocate and Shri A.F. Patel, Advocates for some of the respondents. Shri M.A. Rangaswamy, Advocate for the Cotton Corporation of India and Shri Rishikesh, Advocate for some of the other respondents were not ready in their respective appeals. But we heard arguments on the side of the appellant Collector and such of the respondents who were ready, as indicated above.

5. For the respondents it has been urged that there is no valid transferred proceedings pending before us in terms of Section 131B of the Customs Act and for that reason itself this batch of appeals must be dismissed. It is contended that 11-10-1982 is the appointed date in terms of Section 131B and that it is only proceedings before the Central Government as were pending on that date that could be validly transferred for further proceedings, in terms of the said Section, before this Tribunal. The argument for the respondents is that there was no such valid proceeding pending before the Central Government on 11-10-1982, to be transferred to this Tribunal.

6. The show cause notice under Section 131(3) of the Customs Act, as mentioned earlier, is dated 8-10-1982. A photostat copy (of evidently the office copy) has been filed by the department as part of its paper book. It contains therein a series of notings in the margin -

(1) Please issue today as desired by Secretary(R), (initialled 11-10-1982);

(2) This dak packet was given to RI(D) at 1.20 by G