OM PETRO CHEMICALS Vs. UNION OF INDIA

JUDGEMENT

(1.) How far and to what extent equity between the parties in the facts and circumstances of the case can be adjusted is the principal question involved in this writ petition.

(2.) Before adverting to issues involved in this matter a brief overview of facts may be noticed. 468 MTs of fuel oil was imported by the petitioner in the second week of September, 1999. The consignment was discharged in 26 containers and value thereof is estimated at 44974.80 US$. It is not in dispute that guidelines issued by the Union of India as was existing on the date of issuance of the bills of lading and date of testing of the imported goods was different. Bills of entries were filed seeking clearance of goods for home consumption in September, 1999. Samples of goods were tested. They were again tested at the instance of the petitioner by Sri Ram Institute. Tests at the instance of the department were carried out by CRCL on 24.8.99 and report submitted thereafter indicated that the sample contained impurities which were indicative of the nature of used oil containing dry organic matter.

(3.) On the request of petitioner fresh samples were drawn and a report dated 13.2.2001 was issued from a perusal whereof it would appear that it contains some amount of acid only. Other impurities which were said to be existing in the sample were not found in his sample. Demurrage was being charged @ 13,000.00 per day. Admittedly, although the goods were worth Rs. 20 lakhs the amount of demurrage has been charged @ Rs.4 lakhs per month and the container charges to the tune of Rs.70 lacs are also being demanded from the petitioner. It is not in dispute that goods are not still cleared and are still lying in containers. A question was mooted at the bar as to whether having regard to the fact that the furnace oil being a hazardous substance should be re-exported at the cost of the petitioner or not.