INDIAN ORGANIC CHEMICALS LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) THE controversy in this petition stands concluded by decisions of two Division Benches of this Court. To appreciate the controversy, it is necessary to set out few facts.

(2.) PETITIONER No. 1 is a Company incorporated under the Companies Act and carries on business in imports of various chemicals and other materials. The Company imported 499. 998 Metric tonnes of 2-Ethylhexanol (Octanol) from the foreign suppliers. The Company filed Bills of entry for clearance on November 8, 1983 on arrival of the goods. The petitioners claim that while computing the customs duty it is not permissible to include expenses incurred after import of the goods. The goods were liable to be classified under the Customs Tariff Item No. 2901/45 and there was no dispute in respect of basic customs duty and the auxiliary duty. The customs authorities insisted on determinating the additional duty by including customs duty while determining the assessable value. The petitioners feeling aggrieved by the action of the department, filed the present petition under Article 226 of the Constitution of India on december 6, 1983.

(3.) THE petition was admitted on December 8, 1983 and petitioners were permitted to clear the goods on furnishing bank guarantee in respect of claim of duty made by the customs authorities by loading the amount of customs duty while calculating the assessable value for levy and collection of additional duty. Accordingly, in pursuance of the interim order the petitioners cleared the goods. Before clearance of the goods the Company become aware that the imported goods is a kind or specified of alcohol and countervailing duty would not be leviable on such import. Accordingly, the Company moved the customs authorities not to levy countervailing duty before clearance of the goods. The customs authorities did not accept the claim and thereupon the petitioners cleared the goods after payment of countervailing duty. The Company then amended the petition and sought refund in respect of payment of countervailing duty of Rs. 3,02,779. 40.