SUSHITEX EXPORTS (INDIA) LTD. Vs. UNION OF INDIA

JUDGEMENT

(1.) The first petitioner is a company incorporated under the Companies Act, 1956. It, inter alia, carries on business of exporting fabrics. The second and the third petitioners are the Directors of the first petitioner (hereafter "the Company ", for short). It is claimed by them that there has been a change of their names/surnames from Harish Chander Tuteja and Dinesh Chander Tuteja to Harish Arya and Dinesh Arya, respectively. To that effect, they have annexed Government of Maharashtra Gazette Notification dtd. 30/12/1999, Exhibit-'A ' to the writ petition.

(2.) A show-cause notice dtd. 30/04/1997 (Ext. 'C ' to the writ petition) was issued to the Company under sec. 124 read with sec. 28 of the Customs Act, 1962 (hereafter "the Act ", for short). It was alleged therein that the Company had indulged in fraudulent export of polyester fabrics and duty-free import of Polyester Filament Yarn and other items under D.E.E.C. Scheme in contravention of the provisions of the Act. In course of investigation preceding such show-cause notice, a raid had been conducted at the premises of the Company on 09/08/1995. The second and the third petitioners having been arrested, it is alleged by them that they were compelled to pay an amount of Rs.68.00 lakh on 10/8/1995. It is further alleged that only after such payment, the Department agreed not to oppose their prayers for bail and consequently, the second and the third petitioners were released on bail by an order dtd. 10/8/1995 of the Additional Chief Metropolitan Magistrate, Mumbai. On subsequent occasions too, the petitioners claim to have further been forced to pay Rs.32.00 lakh and Rs.1.00 crore. The said show-cause notice, inter alia, sought to recover the sum of Rs.2.00 crore, which the petitioners allege they were compelled to deposit, and adjust the same against the total demand of Rs.4,99,53,772.00 mentioned in the show cause notice.

(3.) The grievance voiced by the petitioners in this writ petition dtd. 15/12/2020 is that the show-cause notice has not been adjudicated during the 23 years of its existence; accordingly, a prayer has been made to set aside such notice as well as the proceedings that followed and for a direction on the respondents to return to the petitioners the said sum of Rs.2.00 crore deposited under protest during the investigation together with accrued interest at the prime lending rate prevalent in 1995-1996, in accordance with law.