METAL DISTRIBUTORS LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) PETITIONER No. 1 are a limited Company and carry on business as metal distributors and importers of diverse ferrous and non- ferrous metals. Pursuant to contracts arrived at between the petitioners and foreign suppliers during October 1979 and February 1980, the foreign suppliers shipped diverse quantities of goods, the total of which was 733. 212 metric tons. The goods were shipped by different steamers and upon importation, the petitioners filed 26 bills of entries for clearance for home consumption. The goods were liable to payment of duty under Tariff Entry 73. 03/05 and were assessable for customs duty at 30%, auxiliary duty at 5% and additional duty at Rs. 225/- per metric ton. The Customs Department claimed that the goods were liable to be assessed under Tariff Item No. 73. 15 (1) and (2) and liable to pay customs duty at the rate of 220% per metric ton, auxiliary, duty at the rate of 5% and additional duty at the rate of Rs. 325/-per metric ton.

(2.) THE goods were inspected and were cleared in the year 1981 and on June 20, 1981, the petitioners paid the sum of Rs. 1,29,23,037. 77 in respect of goods covered under 26 bills of entry. At the time of clearance, it was noticed that there was short delivery and such short delivery was certified by Bombay Port Trust authorities by issuing the certificate. On calculation of the amounts, the petitioner were entitled to the refund of Rs. 2,20,132. 86 in respect of duty paid in respect of short landing.

(3.) THE petitioners filed refund applications on March 1, 1982 furnishing requisite particulars, It is also required to be stated that the petitioners had paid duty on June 20, 1981 under protest. The Assistant Collector of Customs, Bombay, by impugned order dated April 8, 1982 rejected the application on the ground that the claim for refund was lodged after expiry of six months from the date of payment of duty and consequently was barred by limitation as prescribed under section 27 (1) of the Customs Act. The order of the Assistant Collector is under challenge in this petition filed under Article 226 of the Constitution of India.