ORACLE INDIA PVT. LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) PETITIONER is seeking for quashing of notices dated 21 -5 -2013 issued by respondent No. 4 to its bankers as per Annexures -A1 and A2 and for a mandamus to respondent No. 4 to refrain them from initiating any recovery proceedings based on impugned notice till the expiry of statutory period of appeal and thereafter, till the disposal of stay application to be filed before the appellate authority. A further direction is also sought to respondent No. 4 to refund the amounts recovered by enforcing the impugned notices and encasing the bank guarantees along with interest thereon and for costs of the petition. Heard Sri K.G. Raghavan, learned Senior Counsel appearing on behalf of Sri Ajay J.N., learned counsel for petitioner, Sri N.R. Bhaskar, learned counsel appearing on behalf of Sri Jeevan J. Neeralagi, for respondents 1 to 5. Perused the averments made in the petition and annexures appended thereto, as also the statement of objections filed by respondent Nos. 1 to 5.

(2.) PETITIONER is engaged in the business of developing and selling information technology related to hardware support and software products and is having its registered office at New Delhi and also at Bangalore. M/s. Sun Microsystems India Pvt. Ltd. became a part of petitioner -company, which is engaged in the activity of importing various information technology related hardware products and spares at Bangalore and Chennai. On an intelligence information received by Department of Revenue Intelligence (DRI) investigations were initiated during October, 2006 to ascertain correct value of the spares imported by M/s. Sun Microsystems India Pvt. Ltd. in Bangalore and Chennai, pursuant to which show cause notice dated 27 -2 -2009 came to be issued demanding the differential customs duties based on the assessable value redetermined at United States List price. After hearing the noticee, an Order -in -Original came to be passed on 29 -3 -2012, demanding tax, interest and penalty vide Annexure -B. Said order also directed the finalization of provisional assessment since Bills of Entry had been provisionally assessed for clearance.

(3.) THE goods imported during the period 11 -5 -2007 to 31 -3 -2008 had been provisionally assessed pending finalization and as already noted hereinabove in Order -in -Original dated 29 -3 -2012, provisional assessment orders were directed to be finalized. Pursuant to same, provisional assessment came to be finalized and an Order -in -Original came to be passed on 20 -5 -2013, Annexure -F, whereunder the value of goods came to be redetermined on the basis of United States of America's list price as Rs. 1,54,74,52,291/ - under Rule 9 of the Customs (Valuation) Rules, 2007 and the differential duty payable was determined at Rs. 19,85,21,756/ - and affirmed the demand of duty short paid as Rs. 19,85,21,756/ - and demanded payment of interest on the short collected duty above referred to by an order of even date. The bank guarantees furnished for an amount of Rs. 24,50,00,000/ - at the time of provisional assessment came to be invoked by respondent No. 3 on 21 -5 -2013 and realized the proceeds thereof. On such Order -in -Original being passed affirming the provisional assessment, communication dated 21 -5 -2013 came to be issued by respondent No. 4 to the bankers of petitioner for forwarding the cheques in favour of respondent No. 2 towards the bank guarantees invoked which has been undisputedly received.