NATIONAL STEEL INDUSTRIES LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) BY filing this writ under Articles 226 and 227 of the Constitution of India, the petitioner in substance seeks issuance of writ of mandamus claiming refund of Rs. 22,85,790/- deposited by the petitioner towards purported demand of interest under the Customs Act raised by the respondents (Customs Authorities) for release of certain goods kept in warehouse and seeks to question the legality of order (Annexure J) passed by Assistant Collector rejecting the claim of petitioner for refund of interest amount. In order to appreciate the grievance urged by the parties, it is necessary to state the facts-which are brought on record by the parties.

(2.) PETITIONER is a limited Company registered as such under the Companies Act. It is engaged in the manufacturing activities and has a plant at Ghatabillod in District Dhar. It is the case of petitioner that for the 1988 -99, the Government had formulated the policy of Import-Export pursuant to which any manufacturer engaged in export business of their finished goods could import any raw material to be used in manufacture of finished goods without payment of customs duty. Petitioner claiming to be such manufacturer imported certain goods (C. R. Coils) under OGL (Open General Licence/advance Licence) and kept them in warehouse of Government as per the requirement of Customs Act till the formalities of clearance were completed by the concerned authorities. By letter dated 11-9-1989 (Annexure ^b), the petitioner requested the Collector Customs and Central Excise to allow them to remove/release their goods i. e. C. R. Coils Without payment of customs duty and interest as according to petitioner in terms of Chapter XIX of Export-Import policy 1988-91 and Notification No. 116/88, dated 30-3-1988, the goods imported by any assessee under OGL, or any person claiming to be the supported manufacturer of the goods can claim exemption from payment of duty on the said goods. The petitioner therefore, claimed that they being a supported manufacturers of one Company M/s. Arandi (P) Ltd. who have duly authorised them against their advance licence are entitled to remove the goods in terms of the said policy without payment of any Customs Duty.

(3.) THE Additional Collector by its letter dated 12-9-1989 (Annexure C) rejected the application made by petitioner. Though while rejecting the said application the Collector did not give any reasons except to state that after perusing the application and the documents enclosed the petitioner is not entitled to any duty exemption. This was followed by another letter dated 22-9-1989 (Annexure E) containing reasons for rejections. The petitioner then felt aggrieved of the aforesaid rejection filed their representation before the Board. It appears that the Board accepted the request made by the petitioner and allowed them to clear the goods without payment of Customs Duty by its telex dated 22-3-1990 sent to Collector (Annexure F ). It reads as under :