MODERN RUBBER INDUSTRIES Vs. UNION OF INDIA

JUDGEMENT

(1.) THE petitioner is a sole proprietary concern, inter alia, engaged in the business of retailing and retreading of tyres. The petitioner has filed this petition seeking declaration and consequent direction holding Customs Department liable to bear entire charges of the Central Warehousing Corporation ("cwc" for short) payable in respect of the petitioner's goods as and from the date of the final order of Customs, Excise and Gold (Control) Appellate Tribunal ("cegat" for short) dated 4th September, 1996 relying upon the judgment of the Apex Court in the case of Shipping Corporation of India Ltd. v. C. L. Jain Woolen Mills, 2001 (129) E. L. T. 561 (S. C) = AIR 2001 SC 1806. The Facts :

(2.) THE facts, in nut shell, leading to the present petition, are as under : The petitioner filed Bill of Entry dated 20th May, 1994 seeking clearance of a consignment of 127. 90 MT of scrap used rubber tyres for retreading valued at Rs. 4,07,599/- claiming assessment under Chapter Heading 4012. 90 of the Customs Tariff Act, 1975.

(3.) THE Customs Department loaded the value of the goods from Rs. 4,03,524/- to Rs. 87,51,269/- and refused to release the said goods and issued show cause notice calling upon the petitioner to show cause as to why duty should not be charged on the loaded value. It was also proposed to confiscate the goods and impose penalty on the importer, the petitioner.