MESSRS GRASIM INDUSTRIES LTD. Vs. UNION OF INDIA

JUDGEMENT

(1.) PETITIONERS have challenged the order dated 18.02.2008 annexed at Annexure-I to the petition in following factual background.

(2.) PETITIONERS had imported steam coal for which, bill of entry was filed on 10.05.2001 along with necessary documents. The Assessing Commissioner made provisional assessment. The petitioners paid duty as per the provisional assessment and cleared the goods for home consumption. Assessment was, however, finalized six years later. In such assessment order, the Custom Authorities demanded additional duty of Rs.21,44,070/- on the ground that the demurrage charges paid by the petitioners were also required to be taken into account for the purpose of ascertaining the assessable value of the goods. The petitioners, therefore, filed appeal before the Commissioner, challenging such further duty demand. Pending such appeal, petitioners also prayed for waiver of entire pre-deposit of the differential additional duty and prayed for stay against the respondent thereof. On such application, the Commissioner passed his order dated 18.02.2008 and insisted that the petitioners should deposit 75% of the duty with interest within two weeks by way of pre-deposit.

(3.) IT is also the case of the petitioners that by virtue of several decisions of the Tribunal and the High Court, such demurrage charges cannot be included for the purpose of ascertaining the assessable value of the goods. The petitioners, therefore, contend that in view of such strong prima facie case, the insistence on part of the Commissioner to collect 75% of duty with interest by way of pre-deposit was wholly unjust.