OSWAL WOOLLEN MILLS LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) THE petitioners are a public limited company and are engaged in the business of woollen materials. The petitioners, in course of the business, imported synthetic waste under OGL-4 AM 1983-84 (Appendix 16) and sought clearance. The petitioners claimed that the goods imported were destroyed in Customs Warehouse at Ludhiana due to fire. The customers authority declined to clear the goods by asserting that OGL-4 Appendix 16 of Import Policy 1983-84 has no application. The petitioners thereupon preferred the present petition under Article 226 of the constitution seeking direction to the Collector of Customs to clear the consignment. The learned single Judge while admitting the petition directed the department. The clear the consignment after provisional assessment and by securing requisite bank to complete adjudication proceedings in pursuance of the show cause notice issued on June 23,1985 under Section 124 of the Customs act.

(2.) ACCORDINGLY, the petitioners cleared the consignment after furnishing bank guarantee and thereafter the Additional Collector of Customs by impugned order dated June 5, 1986 held that the goods cleared by the petitioners could not have been imported in pursuance of OGL-4 appendix 16 Import Policy 1983-84 and the goods were liable for confiscation. As the goods were already cleared by the petitioners, the Additional Collector imposed penalty of Rs. 2,34,423/- under Section 112 of the Customs Act and directed enforcement of the bank guarantee. The petitioners thereupon amended the petition and challenged the legality of this order.

(3.) APART from the impugned order passed by the Additional Collector, the petitioners also challenged the levy of landing charges and validity of provisions of Section 3 (2) and levy of additional countervailing duty.