GIPPSAERO PTY. LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) WHAT is challenged in this writ petition under Article 226 of the Constitution is the communication dated 31 December 2013 of respondent No. 2 -Asst. Commissioner of Customs (Import), (Exh. U), to respondent No. 3 -ANZ Bank seeking to encash the Bank Guarantee of Rs. 1,21,61,500/ - issued in favour of Commissioner of Customs, Kolkata. This Bank Guarantee was being encashed on account of the petitioner's dues under Order -in -Original dated 20 November 2013. An aircraft imported by the petitioner at Kolkata valued at Rs. 4,05,38,320/ - had been seized by Customs department. Pending the adjudication of the import, the aircraft was released on 10 May 2013 provisionally on execution of bond and on furnishing a bank guarantee of Rs. 1,21,61,500/ - by the petitioner.

(2.) THE Commissioner of Customs by the adjudication order dated 18 -20 November 2013 confiscated the aircraft and imposed a redemption fine of Rs. 81,61,500/ - in lieu of confiscation. The adjudication order also confirmed custom duty of Rs. 82,59,527/ - under Section 28 of the Customs Act, 1962 and imposed a penalty of Rs. 40,00,000/ - on the petitioner. The Commissioner of Customs in the adjudication order also directed appropriation of the redemption fine and penalty of Rs. 1,21,61,500/ - out of the bank guarantee submitted by the petitioner.

(3.) IT is, thus, clear that invocation of the bank guarantee by the impugned communication dated 31 December 2013 is only a consequence of implementation of the order dated 18 -20 November 2013 passed by the Commissioner of Customs Kolkata. The cause of action for filing this petition has, therefore, arisen within the territorial jurisdiction of Calcutta High Court. It cannot be said that any part of any cause of action for filing this petition has arisen within the territorial jurisdiction of this Court.