EXECUTIVE DIRECTOR, F.SEYAD RABBANI, SEYAD COTTON MILLS LTD. AND ORS. Vs. THE ADDITIONAL DIRECTOR, DEPARTMENT OF REVENUE INTELLIGENCE AND ORS.

JUDGEMENT

(1.) THIS Writ petition has been filed for issuance of a Writ of Certiorari, calling for the impugned summon issued by the 2nd respondent in file No. DRI/CZU/TTN/48/05/INT -1/2015, dated 03.08.2015 and quash the same as illegal, incompetent and arbitrary.

(2.) THE case of the petitioners is that the petitioners company is a manufacturer of spinning yarn and its related works. The company imported machines from the foreign countries through Tuticorin Sea Port. The company is having a valid IEC Code 2890000656 allotted through Ministry of Commerce, Indian Republic. The company has availed duty exemption from the Indian Customs for importing machines and thereafter, goods were cleared from the Tuticorin Port Trust by the Customs Authority and for which, the company has executed a letter of undertaking and bank guarantee in favour of the Ministry of Revenue for the imported goods. After installing the imported machines, the company has obtained Installation Certificates from the Central Excise Department. The company has obtained exemption from Customs Duty after fulfilling Export Obligation, imposed by the Ministry of Commerce, Indian Republic under Foreign Trade Policy and as per the policy of the Ministry of Commerce, the company has to export the allied materials to foreign countries either manufactured by the petitioners' company or through third party company, within a period of 8 years from the date of installation of the machineries. In order to fulfill the Export Obligation as mentioned above, the petitioners company has exported goods to the tune of Rs. 65,51,298/ - and also through third party company namely, M/s. Avaneetha Textiles (P) Ltd., Coimbatore and M/s. Shri Ramalinga Mills, Aruppukottai. The said two companies are the members of the South Indian Mills Association (SIMA). Thereafter, the petitioners company submitted their report before the Ministry of Commerce and after scrutinizing the documents, Export Obligation Discharge Certificate (EODC) has been issued to the petitioners company. The petitioners company made a submission before the Customs Authority at Tuticorin Sea Port for discharging of the duty for obtaining licenses and to cancel the Letter of Undertaking and also Bank Guarantee. The Assistant Commissioner of Indian Customs, Tuticorin Sea Port has passed an order discharging the petitioners from the customs duty and also directed the Bank and concerned department to cancel the Letter of Undertaking and Bank Guarantee.

(3.) THE contention of the petitioners is that the summons issued by the 2nd respondent is highly arbitrary, without application of mind and without proper delegation of powers. Challenging the summon dated 03.08.2015, the petitioners are before this Court with the present Writ petition.