SADGURU TRADING COMPANY Vs. UNION OF INDIA

JUDGEMENT

(1.) By this petition filed under Article 226 of the constitution of India, the petitioners are challenging the action of the respondents in classifying the Dextrose Anhydrous imported by the petitioners under Heading 17.02 of the Customs Tariff Act, 1975, treating it as sugar in solid form and subjecting it to duty at 100%. The petitioners claim that the imported consignment should have been treated under Tariff Heading 29.01.45, namely Organic Compounds not otherwise specified and attracting duty at 60%.

(2.) The petitioners purchased a total quantity of 75,600 Kilograms of Dextrose Anhydrous from the foreign concern and the goods arrived by vessel 'Freyburg'. The petitioners filed bills of entries, but the classification made by the petitioners was not accepted. The petitioners there upon filed the present petition on October 25, 1982 and the petition was admitted and the petitioners were permitted to clear the goods on furnishing of bank guarantee.

(3.) Shri Bulchandani, learned counsel appearing on behalf of the Department, raised a preliminary objection to the maintainability of the petition by submitting that the petitioners have directly approached this Court without even permitting the Customs Authorities to adjudicate the claim of the petitioners. Shri Bulchandani is right in his submission that it would not be proper for this Court to determine whether the imported goods are liable to duty under a particular tariff item without any material on record. Shri Bulchandani suggested that the Custom Authorities should be permitted to adjudicate the matter and in case the petitioners feel aggrieved by the order of adjudication, then the petitioners may adopt appropriate remedies. In my judgment, the suggestion made by Shri Bulchandani is proper and deserves acceptance. The petitioners have furnished the bank guarantee while clearance of the goods and Shri Vahanvati stated that the said guarantee will be continued till the final decision is taken in the matter. As the petitioners have undertook to keep the bank guarantee alive till the matter is finally adjudicated, either by the Assistant Collector or in appeal by the Collector of Customs or by the Tribunal, it would be appropriate not to entertain this petition and direct the Custom Authorities to adjudicate the claim of the petitioners.