GOI AND ORS. Vs. POLISETTY SOMASUNDARAM PVT. LTD.

JUDGEMENT

(1.) WE have read the judgment in the writ appeal which is under challenge and the judgment of the learned Single Judge in the writ petition which was filed by the respondent. Upon the facts, we are satisfied that no interference is called for. It would appear that on re -importation of the goods, they were allowed to be cleared without payment of duty under Section 20 of the Customs Act on the strength of a bond under the Central Excise Act. It is only thereafter that the respondent was issued with a notice to pay duty under Section 20, which was the excise duty that had not to be paid when the goods were exported. The respondent replied that the goods were in a bonded excise warehouse and excise duty would be paid when they were cleared therefrom for use in manufacture. It does not appear on the record how and why the goods were allowed to be cleared without payment of duty under Section 20 and the only inference can be that the Customs authorities then honoured the excise bond which they now seek to impugn. Secondly, it may well be that by now the goods have been cleared from the bonded warehouse and excise duty has been paid thereon. Allowing the appellants to collect duty under Section 20 would be tantamount to allowing double taxation.

(2.) WE do not, in the circumstances, feel inclined to go into the precise connotation of a bond under the Customs Act. The civil appeal is dismissed. No order as to costs.