FAIRFIELD ATLAS LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) Rule, by consent made returnable forthwith. Learned counsel for the Respondents waives service. By consent and on the request of counsel, the petition is taken up for final disposal.

(2.) The Petitioner is engaged in the manufacture of transmission gears and was importing cutting tools such as hobs, broaches, cutters etc. for use as capital goods in its manufacturing operations in India from related persons. Since the suppliers of the Petitioner were related, the issue arose as to whether the relationship between the two had affected the price of goods imported. Since documents were not produced by the Petitioner despite a request by the Department, the Deputy Commissioner of Customs passed an order dated 24 December 2003 by which he directed that the declared invoice value be enhanced by 25%. The adjudicating authority, however, allowed an opportunity to the Petitioner to produce the documents within a period of three months for finalization of the case.

(3.) On 17 October 2012 the Deputy Commissioner of Customs informed the Petitioner that in terms of the order of the Tribunal dated 20 April 2006, which has attained finality, the Petitioner was liable to pay customs duty on the amount of US$ 20 Lakhs paid for technical know-how from the foreign suppliers. The Petitioner responded by its letter dated 20 October 2012 submitting that the order of the Tribunal categorically held that the Deputy Commissioner had rendered a finding on the issue of a payment of US$ 20 Lakhs which in fact was not an issue to be decided by him as per the Tribunal's order dated 28 June 2004. In this background it was stated that the question as to payment of duty on the amount of US$ 20 Lakhs by the Petitioner did not arise. However, the demand of duty was reiterated by the Deputy Commissioner of Customs on 30 October 2012.