JINDAL STRIPS LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) RULE, returnable forthwith. The respondents waive service. Heard parties.

(2.) THE petitioner Company is an importer and actual user of raw materials like H. R. Coils, work Rolls for manufacturing of Cold Rolled Coils/strips etc. The Company had entered into confirmed contracts with foreign suppliers for import of the above raw materials and had opened irrevocable Letters of Credit in their favour, prior to 23rd December 1991 from which date Sec. 59a of the Customs Act, 1962 ("the Act") has come into force. Sec. 59a inter alia makes it mandatory to deposit 50% of the assessed duty on the goods to be entered for customs bonded warehousing. The petitioner contends that, that part of the said provision (i) is violative of articles 19 (1) (g) and 265 of the Constitution, and (ii) cannot have retrospective operation and, therefore, will have no application to the goods covered by the contracts finalised before 23rd december 1991.

(3.) WE see no substance in either of these contentions and, therefore, repel them for the reasons that follow. The imported goods, instead of being straightway cleared for consumption, can by warehoused under the Act. Warehousing is a facility of deferring payment of duty till actual clearance from warehouse is made. Section 9 of the Act empowers the Board to notify certain places as warehouse stations. In those stations, either a public warehouse can be appointed or approved warehouse can be licensed. Warehoused goods can be cleared for home consumption under section 68 of the Act at any time upon payment of duty on the goods at the rate prevailing on the date of their removal from the warehouse. The above facility which was given almost in blanket form is withdrawn by Section 59a inserted by the Customs (Amendment) Act, 1991.