COLLECTOR OF CUSTOMS Vs. DYTRON INDIA LTD

JUDGEMENT

(1.) The question which arises in this appeal relates to the right of the Customs Authorities to claim payment of duty and other charges in respect of goods imported by a company which has subsequently gone into liquidation.

(2.) The company in question is Dytron (India) Limited (hereinafter referred to as the 'company'). The application for winding up of the company was filed by East West Construction and Builders Private Limited in 1998 (O.P No. 510 of 1988). Subsequent thereto the company went into liquidation and the Official Liquidator took possession of the assets of the company. The company had, prior to its liquidation, imported certain chemicals. The chemicals were stored with the Bengal Bonded warehouse without payment of Duty. The Official Liquidator took inspection of the chemicals pursuant to an order of Court. The chemicals were valued. Valuation Report was submitted. On 7th February, 1995 and 8th February, 1995 the Official Liquidator issued advertisements for sale of the chemicals describing them as the assets of the company. The terms and conditions of the sale provided that the chemicals were being sold on 'as is where is basis'. The offers were to be accompanied with 20 per cent of the bid amount. The successful bidder was to deposit the balance purchase price within a period of 90 days from the date of sale by the Court. Upon failure to make payment of the balance price the earnest money was to stand forfeited and the chemicals sold at the risk and cost of the defaulting bidder.

(3.) The Subhyog Chemical Industries Limited (hereafter referred to as purchaser) was declared as the highest bidder for the chemicals at a price of Rs. 64.25 lakh. Its offer was accepted by order dated 6th April, 1995 and it was directed to make payment of the balance consideration money within the time as prescribed by the Sale Notice and/or the terms and conditions of sale. It was made clear by the order dated 6-4-1995 that delivery was to be given only after the payment of the entire balance purchase price. A sum of Rs. 12.20 lakh had been paid till that date.