UTKARSH CHEMICALS Vs. UNION OF INDIA

JUDGEMENT

(1.) Even the question of violation of principle of natural justice and audi alteram partem, the appellate authority can look into since it is not in dispute that a person aggrieved by this-order-in-original may file an appeal under Section 129 A (1) (a) of Customs Act , 1962 read with Rule 6 (1) of the Customs (Appeals) Rules, 1982 in quadruplicate in Form C.A.-3 to:

(2.) Facts in brief, as could be set out from the memo of petition, deserve to be set out as under:

(3.) The petitioner entered into an agreement for purchase of 100% Polyester Bed Cover from M/s. Shenzhen Juntian Home Textile Industrial Co. Ltd., China and after negotiation agreed to purchase 24,696 pcs. (343 bales, 72 pcs per Bale in bulk packaging) @ USD1.42/ Pcs. The said goods were shipped by the foreign supplier against commercial invoice dated 17.01.2017 for the CIF value of USD 35068.30. The petitioner filed the bill of entry bearing No. 8562944 dated 15.02.2017 for the purpose of clearance for home consumption. In the said bill of entry the petitioner has declared the goods as 100% Polyester Bed Cover under Customs Tariff Heading 63041930. The petitioner after filing the bill of entry made the self assessment and deposit the duty of Rs.10,66,681/- on 18.02.2017 against the bill of entry dated 15.02.2017. The Directorate of Revenue Intelligence Ahmedabad has issued a letter dated 22.02.2017 to the Joint Commissioner of Customs, Mundra, wherein they have raised their doubts on the issue of classification of 100% Polyester Bed Cover and therefore, they have drawn out samples from other importers for testing by the Textile Committee with the request to decide whether these samples fall under the category of "made ups" and further directed the customs department that consignment of other than those importer whose name have been mentioned in their letter dated 22.02.2017 may be released provisionally, name of petitioner does not reflect in the list of importers. Thereafter, the petitioner time and again approached the customs department for clearance of the goods since they did not fall under the category of importers whose goods could not be cleared by making provisional assessment as per the aforesaid DRI letter dated 22.02.2017. However, no steps have been taken for clearance of the goods despite payment of duty and submission of all the documents. The petitioner filed the Special Civil Application No. 7314 of 2017 before this Court and this Court vide its order dated 12.04.2017 was pleased to allow the amendment in the prayer clause and also issued notice to the respondents returnable on 17.04.2017 on 12.04.2017. Thereafter the petitioner received letter dated 09.06.2017 from the office of respondent wherein it was stated that the petitioner may provisionally release the declared goods i.e. 100% Polyester bed Cover (Bulk Packings) (Size 225 x 225) on submission of suitable bond and bank guarantee till pending investigation by the SIIB in the matter. The petitioner vide letter dated 13.06.2017 informed the respondent that duty already stands paid as per the assessment made by the proper officer and therefore, requested that the amount of bond and bank guarantee may be specified for provisional release. Thereafter the matter was listed on 2.8.2017 and this Court was pleased to dispose of the application with direction to the respondent to implement the order dated 9.6.2017 for provisional assessment and indicating the bank guarantee etc. by 10.08.2017 with liberty to the petitioner to approach this court in case of difficulty. Thereafter petitioner made representation dated 9.8.2017 and brought to the notice of the respondent the factual position regarding the similar goods being cleared at other ports and the amount of duty already paid by the petitioner. The petitioner received letter dated 10.8.2017 from respondent, specifying the chapter heading under which they wish to demand the differential duty and also the amount of bank guarantee to be submitted by the petitioner. Being aggrieved by said letter/order, the petitioner preferred this petition under Article 226 of the Constitution of India.