BUDH SINGH BAPNA Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) B .P. Beri, J 1. This is a special appeal directed against the judgment of the learned Company Judge in the matter of Udaibhan Industries Ltd., Dholpur (in liquidation) in regard to the recovery of the dues of the State of Rajasthan by way of customs duty.

(2.) THE facts which we might notice for the disposal of this appeal are these, Between the erstwhile State of Dholpur and M/s Khemsingh and Co. an agreement was made on 30.11.1945 for starting an oil mill at Dholpur. The State granted an exemption to the proposed mill from payment of customs duty. It was, however, added that the concession was not transferable without the permission of the State. In November 1947 Shree Udaibhan Industries Ltd., was incorporated and by virtue of an agreement between this company and M/s Khem Singh and Co. the concession relating to the exemption from customs duty was transferred. It is not in dispute that this transfer had the concurrence of the State of Dholpur and Shri Udaibhan Industries Ltd. (hereinafter called 'the Company) continued to enjoy the exemption. In between the period of 28 10 50 and 17 8 51 large quantities of oil and oil cakes were exported as products of the Company to M/s Narain Das and Co., Delhi. Since the goods wers declared to be that of the Company no customs duty was levied by the State and if leviable it would have amounted to Rs 1, 55,189 9 -9. Complaints were made to the State by Hari Chand Kalra and Dharam Datt Sidhwani to the effect that from 1.7.50 the Company had been crushing oil seeds belonging to M/s Narain Das and Co. under an agreement between them and oil and oil cakes which really belonged to M/s Narain Das and Company were being exported without payment of customs duty and Company was thus fraudulently evading the customs duty. An enquiry was held by the officer of the State of Rajasthan and the complaint was found to be correct. On the foundation of this report the Commissioner of Customs and Excise passed an order on 80.7.53 adjudging customs liability in the sum of Rs. 1,55,189 -9 -9 -. The order of the Commissioner was sent to the Assistant Commissioner, Customs and Excise Dholpur for realisation. The Assistant Commissioner sent a requisition to the Collector, Bhartpur' under Section 3 of the Rajasthan Public Demands Recovery Act (hereinafter referred to 'the Act'). The Collector issued a certificate dated 29th September, 1953 for the recovery of the aforesaid amount under Section 4 of the Act. Notice under 6 of the Act was sent to the Company and it denied its liability by filing an objection under Section 811) of the Act. The objection was forwarded by the Collector to the Customs Department under Section 8(2) for disposal on 16.11.53. I was rejected on 15 -5 -54. The Collector Bharatpur the reupon passed another order on 19th July, 1955 directing the recovery of the amount from the Company and the movable and immovable properties of the Company were attached.

(3.) THE Liquidator filed a petition (D.B. Writ Petition No. 156B/1957) under Article 226 of the Constitution of India on 30 8.57. The writ application has not been brought on record but from the judgment where by the application was dismissed it appears that the Liquidator did not raise any controversy regarding the validity or propriety of the certificate or the Company's liability for the customs duty. He merely contended that as notice under Section 6 of the Act was not served on the company and as the procedure presescribed by the Act was not followed the seizure of the Company's property was not legal. This Court held that the service of the notice on the Manager was sufficient and it dismissed the petition on 17 -12 -58.