MAHAR SPINNING MILLS LTD Vs. UOI

JUDGEMENT

(1.) WRIT Petition is directed against the Customs authorities treating the Petitioners as defaulters and auctioning the consignments involved in this case. Subsequent to filing of the Writ Petition, it has been disclosed across the bar that in similar cases the Special Branch of Customs, Excise and Gold (Control) Appellate Tribunal had treated 'woollen Waste' as 'wool Tops' and held that the persons like Petitioners were entitled to the benefit of exemption from duty in terms of the Notification No. 240/76, dated 2. 8. 1976. It was also reported that the Tribunal also held that similar goods were covered from licences from import of Wool Waste and no fine was leviable for Import Trade Control (ITC) violations. The Petitioners have annexed this Petition, the Order passed by the Tribunal as Exhibit K-1. After hearing the parties, we are of the view that the stand taken by the Tribunal is reasonable and legal. The interest of Justice will be met, if we dispose this Petition in that line.

(2.) IT is reported that the consignments which is the subject matter of this Petition, are sold by the 3rd Respondents in an auction for aggregate sale price of Rs. 9,86,580/ -. In the light of the view, that we have taken as aforesaid, the Petitioners are entitled to refund this amount, of course, after deducting the dues liable to be paid.

(3.) THE Counsel for the Petitioners and Respondents have agreed that amount of Rs. 69,993. 81 was adjusted by the 3rd Respondent towards sale expenses and an amount of Rs. 1,59,531/- was already adjusted by 3rd Respondent as Port Trust charges. The customs duty admittedly payable by the Petitioners if the consignment treated as Wool Waste amounting to Rs. 1,20,333. 70 has to be deducted from the amount of sale. Deducting above items payable to Port Trust and also the Customs Department, the Petitioners are entitled to recover the balance amount as admissible under the Rules.