IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) FRIDAY, THE FIRST DAY OF AUGUST TWO THOUSAND AND EIGHT PRESENT THE HON'BLE MR JUSTICE B.PRAKASH RAO and THE HON'BLE MR JUSTICE R. KANTHA RAO WRIT PETITION NO : 13973 of 2008 Between: M/s. Prime Mineral Exports Pvt. Ltd. F-1, 1st Floor, Oceanic Apartments, Behind Hanuman Temple, Miramar, Panaji, GOA - 403 001. Rep by its Director, Mr. Melvin Francis Da Silva ..... PETITIONER AND 1 The Assistant Commissioner of Customs, Beach Road, Kakinada, East Godavari District, A.P. 2 Syndicate Bank, Hotel Nava Goa Bldg., A.B. Road, Panaji, Goa - 403 001 Rep by its Branch Manager .....RESPONDENT(S) Petition under Article 226 of the constitution of India praying that in the circumstances stated in the Aﬃdavit ﬁled herein the High Court will be pleased to to issue any writ, order or direction most particularly in the nature of Writ of Mandamus, declaring the action of the 1st respondent in proceedings No. SB. No. 32/27-8-07-1614 dated 6-6-2008 directing the 2nd respondent for encashment of bank guarantees pending stay application before the commissioner (Appeals) Visakhapatnam as illegal, arbitrary, unjust and in violation of principle of Natural Justice and the constitutional rights guaranteed under the Art. 14 and 19 (1)(g) of constitution of India and pass Counsel for the Petitioner: MR.M.S.RAMCHANDRA RAO Counsel for the Respondent No.: MR.A.RAJASHEKAR REDDY (ASST SOLICITOR GEN) ORAL ORDER: (per Hon’ble Sri Justice B.Prakash Rao) Heard Sri M.S. Ramachandra Rao, learned counsel appearing for the petitioner and also Sri Rajashekar Reddy, learned Assistant Solicitor General and at their request the main Writ Petition itself is taken up for disposal. The petitioner herein is a Company engaged in the business of export of iron ore ﬁnes. In that process there has been a check by obtaining a sample, whereby on analysis, the Custom House Laboratory found that the ‘Fe content’ of the sample is above the required and thereby issued proceedings dated 17.3.2008. The details of which are not necessary. It is submitted that even though the appeal provision under Section 128 of the Customs Act is available to the petitioner-Company within a period of 60 days from the date of communication of the order, as the ﬁrst respondent issued proceedings dated 18.3.2008 for encashment of bank guarantee, the petitioner-Company was constrained to approach this Court by way of W.P.No. 6956 of 2008. This Court by an order dated 31.3.2008 directed the respondents not to give eﬀect or take any coercive steps, in any manner, whatsoever, in pursuance of the orders passed in Original No. 2 of 2008 dated 17.3.2008 till 27.5.2008 including the encashment of the bank guarantee, which has been extended till 22.8.2008 in favour of the ﬁrst respondent. Aggrieved by the orders dated 17.3.2008 the petitioner-Company ﬁled an appeal before the Commissioner (Appeals), Visakhapatnam along with Stay Application on 23.5.2008, which is pending adjudication. Since no orders are forthcoming and the respondents are proceeding for encashment of bank guarantee, petitioner approached this court by way of filing this Writ Petition. This Court as per orders dated 2nd July 2008, granted interim suspension of the impugned proceedings dated 6.6.2008. Subsequently, the matter come up for hearing, however, no counter affidavit is filed. Heard both sides. Having regard to the facts and circumstances especially the fact that the appeal is pending consideration along with an application for stay, without going into the merits of the case, we dispose of the Writ Petition with a direction to the appellate authority-Commissioner of Customs (Appeals) Visakhapatnam, to dispose of the interim application and also the main appeal on merits in accordance with law within a period of four weeks from the date of receipt of a copy of this order. It is needless to mention that the interim orders granted by this court on 2nd July 2008 shall continue till the orders passed in the stay petition ﬁled before the Commissioner of Customs (Appeal) Visakhapatnam. No order as to costs. ________________ B.PRAKASH RAO, J ___________________ R. KANTA RAO, J 1st AUGUST, 2008 KA ..... REGISTRAR // TRUE COPY // SECTION OFFICER To 1 The Assistant Commissioner of Customs, Beach Road, Kakinada, East Godavari District, A.P. 2 Syndicate Bank, Hotel Nava Goa Bldg., A.B. Road, Panaji, Goa - 403 001 Rep by its Branch Manager 3. 2CD copies