ASSOCIATED CONTAINER TERMINALS LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) THE Petitioner has a warehouse in Faridabad, Jaryana. On 1st march, 2001 certain garments imported by M/s. Kushang Apparels were warehoused in the petitioner's warehouse. Despite the warehouse period, in terms of Section 61 of the Customs Act, 1962 ('the Act'), expiring on 28th february, 2002 the customs authorities did not initiate action under Section 72 of the Act requiring the owner to pay the customs duty failing which the goods could be sold to recover the customs duty. Meanwhile, the petitioner, acting under Section 63 (2) of the Act, sought to put the goods to sale by way of auction. After four failed attempts at getting the minimum value price fixed by the customs authorities, the goods were finally sold by auction with the consent of the customs authorities on 31st August, 2004. The amount recovered byway of auction was Rs. 41,44,555/- According to the petitioner, he spent an amount of Rs. 2,05,329/- on the auction and this was deducted by him from the sum recovered in the auction.

(2.) ON the basis that M/s. Kushang Apparels had imported CTV kits valued at Rs. 1,23,63,259/- (GIF) and filed 6 inward biljs of entry on 9th february, 2001, the customs authorities determined the customs duty payable at Rs. 67,17,916/ -. The said goods were warehoused after execution of the necessary bonds on 1st March, 2001. The goods were not however cleared by M/s. Kushang Apparels within the warehousing period and nor was any extension sought. The customs department issued notices to M/s. Kushang Apparels on 16th April, 2004 under Section 72 (1) of the Act calling upon it to pay the customs duty, A reminder was sent on 25th May, 2004.

(3.) MEANWHILE, the petitioner wrote to the customs department seeking permission for clearance of the goods that had to be delivered to M/s. Reliable overseas who had successfully bid for the goods put to auction by the petitioner in terms of Section 63 (2) of the Act. However, the customs authorities insisted that, under Section 150 of the Act, the entire auction proceeds had to be first adjusted towards the customs duty. Accordingly, on 27th October, 2004 the customs authorities wrote to the petitioner asking him to first deposit the appropriate customs duty and then" approach the assistant Commissioner, ICD, Faridabad for a no objection certificate for giving delivery of the goods to M/s. Reliable Overseas.