UNION OF INDIA Vs. GOYAL DRESSES

JUDGEMENT

(1.) THESE Writ Appeals are at the instance of Union of India, represented by its Secretary, Ministry of Finance, Department of Revenue against the Order of the learned single Judge of this Court dated 12.03.2003 made in W.P.Nos.4456 to 4463 and 4932 of 1999 setting aside the impugned show cause notices and the final order of adjudication respectively.

(2.) THE Writ Petitions came to be filed by M/s. Goyal Dresses, Chennai, the respondent herein in each of the Writ Appeal. Writ Petition Nos. 4456 to 4463 of 1999 were filed questioning the show cause notices dated 26.10.1994 07.11.1994 07.11.1994 03.07.1995 06.04.1995 03.07.1995 03.07.1995 and 03.07.1995 respectively issued by the Customs Authority, while W.P.No. 4932 of 1999 was filed against the final order of adjudication dated 18.02.1999 made by the Commissioner of Customs (Designated Authority), Customs House, Chennai in terms of Section 87 (m) (ii) (b) of THE Finance Act.

(3.) THE learned Mr. K. Gunasekar, Standing Counsel representing on behalf of the appellants would submit that a perusal of Section 87 (m) (ii) (b) of the Finance Act, 1998 coupled with the explanation would go to show that even if an amount representing duty is paid in respect of the subject matter of demand notices or show cause notices: either voluntarily or under protest, such assessee is not entitled to the benefit of the Scheme. He would further submit that the interpretation put by the learned single Judge that the amount paid prior to the demand notice or show cause notice: either voluntarily or under protest, the same cannot be considered to be an amount paid towards demand notice or show cause notice, is contrary to the provisions of the Act. He would also submit that even when the amounts were paid on 02.8.1994 and 03.08.1994, the petitioner firm was aware that it was making the payment only towards the duty and therefore, when such payments were made, the petitioner assessee is not entitled to the benefit of the scheme in terms of the provisions of Section 87 (m) (ii) (a) of the Act.