HINDSONS PRIVATE LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) BY this petition, the petitioners have inter alia sought a writ of certiorari for quashing the order of Collector of Customs dated 6-3-1987, vide Ex. Y to the petition, wherein the components of "combine Harvesters" imported by the petitioners in the year 1983 have been ordered to be confiscated under Section 111 (d) of the Customs Act, 1962. Since the said goods were released as per the orders of this Court in an earlier proceeding on the petitioners furnishing I. T. C. Bond/bank guarantee for Rs. 37 lakhs by the aforesaid order dated 6-3-1987, the Collector of Customs has directed that the amount of Rs. 37 lakh be recovered from the petitioners as penalty in terms of the Bond/bank guarantee furnished by the petitioners. The petitioners have challenged the validity of the said order of the Collector of Customs in this petition. FACTS

(2.) THE facts relevant for the present petition are as follows : On 5-10-1964 the petitioner No. 1 obtained a registration certificate as a Small Scale Industry from the Directorate of Industries, Government of Punjab. On 23-4-1983 the petitioners sought an endorsement on its Registration Certificate to manufacture "combine Harvesters". In the covering letter dated 23-4-1983 while forwarding the above application it was specifically stated that the petitioners propose to import 35% of components in the first year of commencement of production in order to implement the project speedily and ensure quality as well as upgraded technology but in accordance with the prevailing import policy. On 20-5-1983 the registration certificate issued to the petitioners was duly endorsed to permit manufacture of "combine Harvesters".

(3.) THEREUPON the petitioners imported components of "combine Harvesters" sometime in November, 1983, the clearance of which was objected to by the respondents. On 26-12-1983 a show cause notice was issued by the respondents in respect of the said consignment imported by the petitioners. Challenging the said show cause notice the petitioners filed Writ Petition No. 3062 of 1983 in this Court where interim relief was granted in favour of the petitioners thereby granting clearance of the goods on the petitioners furnishing bond and bank guarantee for Rs. 37 lakh. As per the order of this Court, the goods have been released on the petitioners furnishing Bond/bank guarantee. Thereafter, the above show cause notice was adjudicated and by order dated 6-3-1987 the Collector of Customs sought to confiscate the goods imported by the petitioners under section 111 (d) of the Customs Act. Since the goods were already released as per the orders of this Court, it was ordered that the amount of Rs. 37 lakh be realised as penalty by encashing the Bond/bank guarantee furnished by the petitioners. The petitioners sought to challenge the said order by amending the Writ Petition No. 3062 of 1983. This Court, however, directed the petitioners to file a fresh petition and hence this petition is filed by the petitioners. ARGUMENTS