IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE T.R.RAMACHANDRAN NAIR THURSDAY, THE 9TH JUNE 2011 / 19TH JYAISHTA 1933 OP.No. 35669 of 2001(U) ---------------------------------- PETITIONER(S): ----------------------- BINANI INDUSTRIES LIMITED, BINANI ZINC DIVISION, BINANIPURAM 683 502, REPRESENTED BY ITS PRESIDENT MR.N.MOHAN. BY ADV. SRI.E.K.NANDAKUMAR SRI.A.K.JAYASANKAR NAMBIAR SMT.PRIYA MAHESH SMT.PRIYA MANJOORAN RESPONDENT(S): -------------------------- 1. THE UNION OF INDIA, REPRESENTED BY THE SECRETARY, MINISTRY OF FINANCE (DEPARTMENT OF REVENUE), NORTH BLOCK , NEW DELHI 110 001. 2. THE COMMISSIONER OF CUSTOMS, CUSTOM HOUSE, COCHIN 3,KERALA. 3. THE ASST. COMMISSIONER OF CUSTOMS, GROUP VII, CUSTOM HOUSE, COCHIN 3, KERALA. ADV. SRI.P.S.SREEDHARAN PILLAI, SCGSC BY ADV.SRI.JOHN VARGHESE, SCGSC SRI.P.GOPINATH MENON,SC. THIS ORIGINAL PETITION HAVING BEEN FINALLY HEARD ON 09/06/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ORDER ON CMP. NO.58269/2001 IN OP. NO.35669/2001 DISMISSED 09/06/2011 SD/- T.R.RAMACHANDRAN NAIR, JUDGE APPENDIX PETITIONER'S EXHIBITS P1:- COPY OF THE WAREHOUSING B/E NO.1855 DATED 26.4.2001. P2:- COPY OF THE NOTIFICATION NO.23/2001 (NT) DTD. 22.5.2001. P3:- COPY OF THE PUBLIC NOTICE DATED 1.6.01 BY THE 2ND RESPONDENT. P4:- COPY OF THE MUMBAI COMMISSIONERATE TRADE NOTICE DATED 5.7.2001. P5:- COPY OF THE CIRCULAR NO.62/99 DTD. 17.9.99. P6:- COPY OF THE PUBLIC NOTICE NO.118/2001 DATED 24.10.01. RESPONDENT'S EXHIBITS NIL:- TRUE COPY P.S.TO JUDGE tss T.R. Ramachandran Nair, J. - - - - - - - - - - - - - - - - - - - - - - - - O.P. No.35669 of 2001 - - - - -- - - - - - - - - - - - - - - - - - - - - Dated this the 9th day of June, 2011. JUDGMENT The petitioner is a Company, engaged in the manufacture of Zinc. The raw materials, viz. Zinc concentrate, was being imported by the petitioner from different parts of the world. In the writ petition, the main prayer is for grant of a declaration that the petitioner is not liable to pay interest as per the amended provisions of Section 61(2)(ii) of the Customs Act and that they will be entitled to the benefit of the interest free period of six months from the date of warehousing while clearing goods which were warehoused prior to 1.6.2001. 2. The consignment was warehoused on 1.5.2001, after filing an into- bond warehousing Bill of Entry dated 26.4.2001 with the Customs Authorities. Ext.P1 is the true copy of the said Bill of Entry. It is pointed out that as per the relevant section, the petitioner had a period of six months time, i.e. upto 1.11.2001 to keep the goods in the warehouse without paying any interest for warehousing. 3. An amendment was introduced by the Finance Act, 2001 and the interest free period of six months was reduced to thirty days and the date op 35669/2001 2 from which the amendment is to take effect, was notified by Ext.P2 notification, as 1.6.2001. It is the case of the petitioner that in spite of the clarification issued as per Ext.P4 with regard to the impact of the amendment, the petitioner was directed to pay interest based on the amended provision. It is in these circumstances, the writ petition was filed. 4. As per the direction issued by this Court in C.M.P. No.58269/2001, the consignment was released on the petitioner furnishing a self bond undertaking to pay the disputed interest, if ultimately found liable. 5. Learned counsel for the petitioner submitted that a later circular, viz. Circular No.12/2007-Cus dated 14.2.2007 has been issued clarifying that the amendment will not apply to the goods warehoused prior to the amendment. Learned Standing Counsel for the Department placed before me for perusal the above circular, wherein para 5 reads as follows: “It is accordingly clarified that an amendment to the Customs Act modifying the terms and conditions subject to which the goods shall 'remain warehoused', shall not apply to the goods warehoused prior to the amendment. The instructions contained in Board's letter dated 11.10.2001 and Circular No.62/99-Cus. dated 17.9.1999 stand modified to this extent.” In the light of the above, it is clear that the petitioner will not be liable to pay any further interest. op 35669/2001 3 The writ petition is disposed of in the light of the circular dated 14.2.2007 and it is made clear that the petitioner will not be liable to pay any further interest for the goods already released. No costs. (T.R. Ramachandran Nair, Judge.) kav/ op 35669/2001 4 T.R. Ramachandran Nair, J. - - - - - - - - - - - - - - - - - - - - - - O.P. No.35669 of 2001 -- - - - - - - - - - - - - - - - - - - - - JUDGMENT 9th day of June, 2011.