SJK STEEL PLANT LIMITED Vs. GOVERNMENT OF INDIA

JUDGEMENT

(1.) THIS is another round of litigation by the petitioner, who has so far failed to persuade the Central Board of Excise and Customs (for short 'the Board') to exercise power under proviso to Section 61(2) of the Customs Act, 1962 (for short 'the Act') in its favour.

(2.) PETITIONER imported certain machinery and equipment for setting up of an integrated steel plant at Tadipatri, Anantapur District. The machinery of the petitioner was kept in the private licensed bonded warehouse. Some of the machinery was cleared on payment of Customs duty and interest payable thereon, but the remaining machinery was not removed from the bonded warehouse till June, 2001. After moving out the machinery from the bonded warehouse, the petitioner made an application to the Board for waiver of interest amounting to Rs. 4.11 crores. The same was rejected on the ground that there was no special reason to waive the interest.

(3.) THE petitioner has challenged the aforementioned decision mainly on the ground that the same is contrary to order dated August 23, 2004 passed in Writ Petition No. 5635 of 2004. It has averred that as per the direction given by the Court, the Board was required to pass a reasoned order, which it has failed to do and, therefore, the decision contained vide letter dated March 8, 2005 should be quashed.