SHREE RAJASTHAN SYNTEX LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) BY way of this writ petition under Article 226 of the Constitution of India, the petitioners seek direction against the respondent Union of India to waive the interest payable by the petitioners in respect of the amount in dispute, in Writ Petitions No. 2259/83, 2420/83, 2704/83, 2421/83, 2258/83 and 2703/83 of the Bombay High Court. It is prayed that the respondents be directed to decide the petitioners' claim for waiver of interest as per Trade Notice No. 47/86 -C.E. in the same manner in which it has been settled in relation to M/s. Shruti Synthetics Ltd., Udaipur and further, respondents be directed not to compel the petitioners to pay the interest.

(2.) THE facts in brief are that the petitioners Shri Rajasthan Synthetics Ltd., a company registered under the Company Act is carrying the business of manufacturing man -made fibre yarn and other synthetic blended yarn. In the year 1983 the Central Government issued the exemption Notification Nos, 38/93 and 39/83, dated 1 -3 -1983 exempting the imports of man -made fibres from a part of the customs duty. The petitioners and M/s. Shruti Synthetics Ltd. both imported man -made staple fibre from Bombay Port. The duty was levied on the said imports under Heading 56.01 of the First Schedule of the Customs Tariff under Notification Nos, 39/83 and 38/83, dated 1 -3 -1983 on duty in excess of the 40% ad valorem on viscose fibre and 100% polyester fibre respectively was payable in respect of the imported goods which, inter alia, covered viscose and polyester staple fibre. The Customs authorities insisted to pay the auxiliary and additional duty, in excess of the limits prescribed by the exemption notification. The petitioners and M/s. Shruti Synthetics Ltd., both filed writ petitions in the Bombay High Court challenging the authority of the Government to collect auxiliary and additional duty in excess of the limits prescribed by the said notification dated 1 -3 -1983. The petitioners filed six writ petitions in the Bombay High Court. M/s. Shruti Synthetics Ltd. also filed two writ petitions. The Collector, Central Excise and Customs, Jaipur issued a Trade Notice No. 47/86 -C.E. The said Trade Notice was issued as per the Scheme for compounding of offence of settlement of court cases relating to Customs and Central Excise issued by the Government of India. The benefit of the Scheme was available to : -

(3.) THE Counter affidavit has been filed by Shri M.P. Meena, Assistant Collector of Central Excise, Jaipur. It is averred that on the writ petitions filed by the petitioners the Bombay High Court granted stay on the condition that it shall be liable to pay 1% interest duty in case the writ petition is ultimately dismissed. As the petitioner did not file the application and made declaration as required under the Scheme before the cut of date i.e. 31 -12 -1986 on 7th July, 1998 the Bombay High Court directed the petitioners to pay the differential duty along with interest at 12% from the date of clearance of the goods till realisation of the differential duty. The petitioner preferred an appeal against the said order before the Division Bench of the Bombay High Court. On 1 -11 -1988, the Division Bench of Bombay High Court directing the petitioners to pay the differential duty and restrained the respondents from taking coercive steps to recover the interest. The differential duty was paid by the petitioner as per the directions of the Bombay High Court. The recovery of interest was stayed for a period of six months by order dated 16 -11 -1989. The said indulgence was given with a view to given opportunity to the petitioner to make representation to the appropriate authorities for waiving of interest under the Amnesty Scheme. The Collector of Customs vide letter dated 2nd February, 1989 decided the matter and informed the petitioners that the petitioner -company was not entitled to the benefit of the Scheme as it did not file the declaration on or before 31st December, 1986.