TIMKEN INDIA LIMITED Vs. ASSTT. COMMR. OF CUSTOMS

JUDGEMENT

(1.) ACCORDING to the writ petitioner, the goods were imported in this country only for the purpose of exhibition upon furnishing bank guarantee and therefore in accordance with the provisions as laid down in Section 74 of the Customs Act they will be exempted 98% of such duty as provided therein. The Authority concerned cannot prceed on the basis of any marginal note in view of the Single Bench decision of this Court in : 1992(59)ELT522(Cal) (Texmaco Limited v. Union of India). However, I have come to know from the learned Counsel appearing for the Authority that bank has already given an information in respect of encashment of bank guarantee but they will not take any step till the disposal of the stay application.

(2.) THE petitioner contended that immediately after passing of the order an appeal was preferred and a stay application was made by the petitioner and the bank guarantee is valid till July 2000, therefore no order can be passed at this stage in respect of the bank guarantee without hearing the appeal.

(3.) WITH the above observations, the writ petition stands disposed of. No order as to costs.