BHAVYA APPARELS PVT. LTD. Vs. UNION OF INDIA

JUDGEMENT

(1.) Heard learned counsel for the parties for final disposal of the petition. The petitioners have approached this Court challenging order dated 28-4-2011 as at Annexure-H to the petition in following factual background.

(2.) The petitioner is a company engaged in manufacturing of textile goods and is 100% Export Oriented Unit. For certain irregularities committed by the petitioners, the departmental authorities carried out verification. Show cause notice was issued and adjudication proceedings were initiated. Adjudicating Authority passed his order-in-original on 22-7-2003 demanding customs duty of Rs. 16.97 crores (rounded off) with matching amount of penalty. Independent penalties on Directors were also imposed. Against the order of adjudicating authority, the petitioners preferred appeal before the Tribunal. Along with the appeal, the petitioners prayed for waiving of pre-deposit. Tribunal passed an order on 14-1-2004 and granted stay and waived rest of the amount by way of pre-deposit on condition that the petitioners deposit sum of Rs. 3 crores. The Directors were however, required to deposit Rs. 20 lakh and Rs. 10 lakh respectively.

(3.) The petitioners challenged the said order of the Tribunal by filing Special Civil Application No. 5523/2004 before this Court. In the said petition on behalf of the petitioners, it was suggested that since the order of the Tribunal grants conditional stay in favour of the petitioners and since the petitioners do not want any interim stay as such, they would approach the Tribunal for hearing the appeals on merits. The Court disposed of the petition by order dated 3-5-2004 observing that as and when such application is moved, Tribunal shall consider the same in accordance with law.