HYDERABAD INDUSTRIES LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) The Hyderabad Industries Limited, Sanatnagar is the Petitioner herein praying for issue of a writ of mandamus directing the Respondents to refund to the petitioner the sum of Rs.55,326-96 illegally levied, collected and retained by the 2nd Respondent.

(2.) The petitioner is a company incorporated under the Indian Companies Act, having its registered office at Hyderabad and one of the manufacturing units at Sanatnagar. It was formerly known as Hyderabad Asbestos Limited. The company is engaged in the manufacture and sale of Asbestos Cement products. The raw-material utilised for this purpose is raw asbestos which is imported from outside. The imports are cleared for ware-housing at petitioner's factory unit at Sanatnagar and subsequently on payment of customs duty, arc removed from the ware-house under Section 46 of the Customs Act. In the matter of valuation of the import and arriving at the duty payable thereon, the notified exchange value of rupee to the concerned foreign currency, is to be adopted. In this matter, the concerned foreign currency for the purpose of notified exchange value of rupee, is the pound- sterling.

(3.) The case of the petitioner is that the conversion value adopted for the period of clearances was not in accordance with the notified exchange value prevalent on the date of such clearance. As a result of this mis-calculation in the notified exchange value of the pound sterling with the Indian rupee, the customs authorities have levied and collected from the petitioner-company an excess duty of Rs.55,326-96. The details of the period of clearances and the corresponding excess amount collected from the petitioner-company are as given hereunder: <FRM>JUDGEMENT_399_ALT1_1992Html1.htm</FRM>