SUGANDHA INDUSTRIES LTD Vs. A K SAHA

JUDGEMENT

(1.) The petitioner company M/s. Sugandha Industries Limited is carrying on business as manufacturer and exporter of calcium carbonate and calcium stearate. According to them, on 17th October, 2001 some Officers of the Directorate of Revenue Intelligence (hereinafter called as D.R.I.) led by the respondent Nos. 1 and 2 came to the office and factory premises of the petitioner and ransacked the place in the name of search. As and when the search was conducted at the factory-cum-registered office of the company, the Calcutta office situated at 228A, AJC Bose Road, 5th Floor, Calcutta-700 020 was also searched by another group of Officers. The petitioner's Officers and employees were not allowed to know what documents the respondent authorities were searching and no reason or ground of such purported search was disclosed to the petitioner company. No notice or memo was served upon the petitioner. No order authorising such search was served upon the petitioner. Such search was conducted for several hours. The petitioners were not aware the materials or documents they were carrying when they entered into office premises, what documents and materials they collected in the course of search, what materials and documents they took away with them and what materials and documents were planted by them at the said office premises. Since about 3 p.m. of 17th October, 2001 till the evening of 18th October, 2001 the entire office was under the control of the persons who had conducted such search. It was led by the respondents Nos. 1 and 2. In course of such search they assaulted one purchase Officer of the petitioner company. They slapped him, pushed him and then in the evening of 18th October, 2001 took him with them to another office of the petitioner company at 2/7, Sarat Bose Road, Calcutta-700 020 from where he was taken to the office of D.R.I. at Ho Chi Minh Sarani. Similar allegations are also made in respect of other employee or employees. The allegations are made that they have behaved in unruly manner and obtained tutored statements under the threat of further assault. One of the employees was detained even 24 hours. Likewise various other allegations are made against the respondents.

(2.) The respondents contended that the petitioner company is not the manufacturer of calcium stearate. They are actually manufacturer of calcium carbonate. In the product of calcium carbonate percentage of availability of calcium stearate is 3% whereas in the product calcium stearate such percentage is 90%. At the material point of time, the export quantity of product calcium stearate of the company was boost up apprehensively. Therefore, there is a reason to believe that calcium stearate must have been purchased from the local market instead of manufacturing the same. In such case, the petitioner company is not entitled to any benefit under the Duty Exemption Scheme.

(3.) In reply thereto, the petitioner contended that it is not obligatory upon the company that it has to manufacture calcium stearate and them export it to get benefit under Duty Exemption Scheme. Even merchant exporter can get such benefit. The Duty Exemption Passbook (hereinafter called as DEPB) Scheme is made by the Union Government as a policy to boost up the export and to have more foreign exchange. There is a limit of getting foreign exchange under DEPB Scheme. However, the action on the part of the respondents is speculative in nature.