SBEC SUGAR LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) THESE appeals, by grant of leave, are directed against the judgments and orders dated 3rd April, 2006 delivered by the High Court of Bombay, whereby the High Court has dismissed the two writ petitions (Nos. 775 and 4173 of 1999) reported in, (SBEC Sugar Ltd. Vs. Union of India)1, 2006(4) Bom.C.R. 177(O.S.) filed by the appellants herein, and has directed the Assistant Commissioner of Customs, Bond Department to finally assess the customs duty and other charges payable by the appellants in respect of the goods covered under the subject bills of entry. The High Court has further directed that if the payment of customs duty, interest and other charges is not made by the appellant company within two weeks from the date of such determination and communication thereof, the customs authorities shall enforce the bond executed by the company, pursuant to the interim order passed by the Court.

(2.) AS a common question of law is involved in the appeals and in fact the latter order is based on the former, these are being disposed of by this common judgment. However, in order to appreciate the controversy involved, for the sake of convenience, the facts emerging from C.A. No. 2899/2006 are being adverted to. These are: Appellant No. 1 (hereinafter referred to as "the importer") a body corporate, is engaged in the manufacture of sugar. Appellant No. 2 is the Vice-President of the first appellant. With a view to set up a sugar manufacturing unit, the importer imported certain capital goods. Instead of getting the goods released for home consumption, the importer opted for getting these goods warehoused under Bond. The present appeal is confined to three consignments under Bond No. CW-20-4732 dated 26th December, 1995; CW-20-4733 dated 26th December, 1995 and CW-20-4842 dated 2nd January, 1996, which were to expire respectively on 25th December, 1996, 25th December, 1996 and 1st January, 1997. It is pertinent to note that on the original bonds and the bills of entry, the ASsistant Commissioner of Customs made an endorsement for payment of interest @ 20% per annum from the date of expiry of the bond.

(3.) ON 22nd August, 1997, a licence under the EPCG Scheme, allowing concessional duty at the rate of 10% was issued to the importer. ON an application by the importer, the said licence was rectified and endorsed as "zero duty."