UNION INDUSTRIES Vs. UNION OF INDIA

JUDGEMENT

(1.) The present writ petition is filed to challenge the validity of Section 95(ii)(b) of the Finance Act, 1998 as well as the three orders all dated 26th February, 1999 passed by the Commissioner of Customs rejecting the application of the petitioner under Kar Vivad Samadhan Scheme, 1998 ( KVSS' for short). However, counsel for the petitioner at the final hearing of the present petition has given up the challenge to the constitutional validity of Section 95(ii)(b) of the Finance (No. 2) Act, 1998. Therefore, the only issue required to be considered in the present petition is whether the Commissioner of Customs (Import) was justified in rejecting the application made by the petitioner under KVSS, 1998.

(2.) The facts relevant for the present petition are that : in the year 1981, the petitioner imported three consignments of crude palm stearin and sought clearance by paying the duty under heading 1514/17 of the Schedule to the Customs Tariff Act, 1975. As the Assessing Officer opined that the said goods are classifiable under heading 1508/13 of the Schedule to the Customs Tariff Act, 1975, the petitioner filed a writ petition in the Delhi High Court bearing Writ Petition No. 1961 of 1981. In the light of the interim order passed by the Delhi High Court in the aforesaid writ petition, the goods were allowed to be cleared on provisional basis by directing the petitioner to pay duty as per the classification claimed by the petitioner and on furnishing bond for the differential duty.

(3.) During the pendency of the aforesaid petition, the Central Government introduced KVSS, 1998. With a view to avail the benefit of the said scheme, the petitioner filed three declarations in respect of the aforesaid goods which were imported in the year 1981 and cleared as per the interim order passed by the Delhi High Court. By the impugned orders all dated 26th February , 1999, the Commissioner of Customs (Import) rejected the application filed by the petitioner on the ground that no show-cause notice or demand notice were issued to the petitioner on the date of filing of the declarations. Challenging the aforesaid orders, the petitioner has filed present writ petition.