JAIPRAKASH ASSOCIATES LTD. Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioners in both the writ petitions are engaged in the business of manufacture of cement for which 'steam coal' is one of the inputs. Gangavaram Port which is located at East -coast is one of the Ports through which the petitioners have been importing 'steam coal'. Admittedly steam coal which is classified under CTH -2701, 1920 is an exempted item from the customs duty vide Government of India's notification dated 17 -3 -2012 issued in exercise of the powers conferred by Sec. 25(1) of the Customs Act, 1962. As per the said notification, only 1% countervailing duty is payable on Steam coal and there is no liability to pay the customs duty.

(2.) The petitioners have been importing steam coal by way of several consignments under Bills of Entry issued from time to time since April, 2012 availing the benefit of the exemption under the notification dated 17 -3 -2012. It is pleaded by the petitioners that all the Bills of Entry are provisionally assessed and the petitioners paid the assessed duty and they have been lifting the consignment from time to time from the Port.

(3.) These writ petitions are filed alleging that the Port Authorities are not allowing the petitioners to lift the coal from the Port purportedly on the basis of the instructions issued by the Director of Revenue Intelligence (DRI), Ahmedabad informing that several cases were detected in recent weeks in Gujarat where 'Bituminous coal', which falls under a different classification and for which no exemption of duty is available, is being imported under the guise of 'Steam coal' and thus evading customs duty by resorting to misclassification taking advantage of the exemption under the notification dated 17 -3 -2012.