1 IN IN IN THE HIGH COURT OF JUDICATURE AT BOMBAY THE HIGH COURT OF JUDICATURE AT BOMBAY THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORDINARY ORDINARY ORIGINAL ORIGINAL ORIGINAL CIVIL JURISDICTION CIVIL JURISDICTION CIVIL JURISDICTION WRIT WRIT WRIT PETITION PETITION PETITION NO.3282 of 1988 NO.3282 of 1988 NO.3282 of 1988 M/s M/s M/s Rajesh Corporation Rajesh Corporation Rajesh Corporation ...... Petitioner Petitioner Petitioner vs vs vs The The The Union of India & ors.. Union of India & ors.. Union of India & ors.. Respondents Respondents Respondents Mr.Vinod Mr.Vinod Mr.Vinod Kothari Kothari Kothari i.b Apex Law for Petitioner i.b Apex Law for Petitioner i.b Apex Law for Petitioner Mr.K.R.Chaudhary Mr.K.R.Chaudhary Mr.K.R.Chaudhary with with with Ms.S.V.Bharucha Ms.S.V.Bharucha Ms.S.V.Bharucha for for for Respondents Respondents Respondents Mr. Mr. Mr. S.P.Jain Partner of Petitioner present S.P.Jain Partner of Petitioner present S.P.Jain Partner of Petitioner present CORAM CORAM CORAM : Dr.S.Radhakrishnan : Dr.S.Radhakrishnan : Dr.S.Radhakrishnan and and and V.C.Daga, V.C.Daga, V.C.Daga, JJ JJ JJ DATE DATE DATE : : : 27th June, 2007 27th June, 2007 27th June, 2007 P.C. P.C. P.C. Heard Heard Heard rival rival rival parties. Perused record. parties. Perused record. parties. Perused record. 1.1.1. The petition is directed against the act of the The petition is directed against the act of the The petition is directed against the act of the respondents respondents respondents seeking to impose customs duty in seeking to impose customs duty in seeking to impose customs duty in excess excess excess of 10 % on the goods imported by the of 10 % on the goods imported by the of 10 % on the goods imported by the petitioners petitioners petitioners covered under the bill of entry at covered under the bill of entry at covered under the bill of entry at Exh.A Exh.A Exh.A and for restraining them from levying or and for restraining them from levying or and for restraining them from levying or recovering recovering recovering the duty in excess of 10 % on the said the duty in excess of 10 % on the said the duty in excess of 10 % on the said goods goods goods and seeking direction to the respondents to and seeking direction to the respondents to and seeking direction to the respondents to clear clear clear the goods of the petitioners on payment of the goods of the petitioners on payment of the goods of the petitioners on payment of duty duty duty at the rate of 10 %. at the rate of 10 %. at the rate of 10 %. 2.2.2. This Court while granting Rule had passed an This Court while granting Rule had passed an This Court while granting Rule had passed an order order order order in terms of minutes oforder dated 10th order in terms of minutes oforder dated 10th order in terms of minutes oforder dated 10th November, November, November, 1988 and granted interim relief in favour 1988 and granted interim relief in favour 1988 and granted interim relief in favour 2 of of of the petitioner subject to furnishing bank the petitioner subject to furnishing bank the petitioner subject to furnishing bank guarantee guarantee guarantee and on undertaking of the petitioners to and on undertaking of the petitioners to and on undertaking of the petitioners to pay pay pay duty at the rate of 10 %. The interim relief duty at the rate of 10 %. The interim relief duty at the rate of 10 %. The interim relief operated operated operated in favour of the petitioners. Goods were in favour of the petitioners. Goods were in favour of the petitioners. Goods were allowed allowed allowed to be cleared. What remains is the to be cleared. What remains is the to be cleared. What remains is the adjudication adjudication adjudication of duty liability. of duty liability. of duty liability. 3.3.3. Having heard the parties in the light of the Having heard the parties in the light of the Having heard the parties in the light of the issues issues issues raised raised raised in the petition, it is clear that the in the petition, it is clear that the in the petition, it is clear that the disputed disputed disputed questions of fact raised in this petition questions of fact raised in this petition questions of fact raised in this petition cannot cannot cannot be investigated or adjudicated upon by this be investigated or adjudicated upon by this be investigated or adjudicated upon by this Court Court Court in its writ jurisdiction. In this view of in its writ jurisdiction. In this view of in its writ jurisdiction. In this view of the the the matter, it is necessary to permit the matter, it is necessary to permit the matter, it is necessary to permit the respondents respondents respondents to complete the process of to complete the process of to complete the process of adjudication, adjudication, adjudication, which the respondents are willing to which the respondents are willing to which the respondents are willing to complete complete complete in the prescribed time frame. in the prescribed time frame. in the prescribed time frame. 4.4.4. The respondents, in the above backdrop are The respondents, in the above backdrop are The respondents, in the above backdrop are directed directed directed to issue show-cause-notice to the to issue show-cause-notice to the to issue show-cause-notice to the petitioners petitioners petitioners within eight weeks from the date of within eight weeks from the date of within eight weeks from the date of receipt receipt receipt of of of the writ, to which the petitioners shall the writ, to which the petitioners shall the writ, to which the petitioners shall reply reply reply within within within four weeks from the date of receipt of four weeks from the date of receipt of four weeks from the date of receipt of show-cause-notice. show-cause-notice. show-cause-notice. The respondents are directed to The respondents are directed to The respondents are directed to complete complete complete the process of adjudication within eight the process of adjudication within eight the process of adjudication within eight weeks weeks weeks from the date of receipt of the reply to the from the date of receipt of the reply to the from the date of receipt of the reply to the show-cause-notice show-cause-notice show-cause-notice after following the principles of after following the principles of after following the principles of natural natural natural justice. The petitioner undertakes to justice. The petitioner undertakes to justice. The petitioner undertakes to co-operate co-operate co-operate with the respondents. All rival with the respondents. All rival with the respondents. All rival contentions contentions contentions are kept open. are kept open. are kept open. 3 5.5.5. The learned counsel for the petitioners makes a The learned counsel for the petitioners makes a The learned counsel for the petitioners makes a statement statement statement that the bank guarantee furnished by the that the bank guarantee furnished by the that the bank guarantee furnished by the petitioners petitioners petitioners in pursuance of the minutes of order in pursuance of the minutes of order in pursuance of the minutes of order dated dated dated 10th November, 1988 shall be kept renewed 10th November, 1988 shall be kept renewed 10th November, 1988 shall be kept renewed until until until final disposal of the adjudication process final disposal of the adjudication process final disposal of the adjudication process and and and for four weeks thereafter. for four weeks thereafter. for four weeks thereafter. 6.6.6. It is made clear that in the event the It is made clear that in the event the It is made clear that in the event the petitioners petitioners petitioners are found to be liable to pay duty, are found to be liable to pay duty, are found to be liable to pay duty, then then then the the the amount of duty shall carry simple interest amount of duty shall carry simple interest amount of duty shall carry simple interest atatat the rate of 12 % per annum from the date of the rate of 12 % per annum from the date of the rate of 12 % per annum from the date of clearance clearance clearance of goods till the date of payment in full of goods till the date of payment in full of goods till the date of payment in full and and and final. final. final. With With With the above direction, petition stands the above direction, petition stands the above direction, petition stands disposed disposed disposed of in terms of this order with no order of in terms of this order with no order of in terms of this order with no order as as as to costs. to costs. to costs. The The The parties to act on ordinary copy of this parties to act on ordinary copy of this parties to act on ordinary copy of this order order order duly authenticated by Associate of this duly authenticated by Associate of this duly authenticated by Associate of this Court. Court. Court. (V.C.Daga, (V.C.Daga, (V.C.Daga, J) J) J) (Dr.S.Radhakrishnan, (Dr.S.Radhakrishnan, (Dr.S.Radhakrishnan, J) J) J) 4