RANCHI MEDICAL RESEARCH AND DEVELOPMENT FOUNDATION PRIVATE LIMITED AND K.K.SINHA, DIRECTOR Vs. UNION OF INDIA

JUDGEMENT

(1.) HEARD the parties.

(2.) PETITIONERS have challenged the order dated 4.11.1997, (Annexure -18) withdrawing exemption certificates; the order dated 18.12.1997, (Annexure -20), directing the petitioners to pay customs duty to the tune of Rs. 1,74,12.357/ - for importing medical equipments detailed as per list; and also the orders of seizure/detention of equipments passed under Section 111(1) of the Customs Act, 1952 (the Act for short) dated 23.1.1998 (Annexure -23).

(3.) MR . Gupta, appearing for the respondents, submitted that the question of limitation has never been raised, even in the writ petition. However, he submitted that the notice was given within the time prescribed under Sub -section (1) of Section 28 of the Act and in any event the Limitation under the said provision is not applicable in this case. He further submitted that Pursuant to the recommendation of the Health Department of State Government and the undertaking of the petitioner to fulfil the conditions, the Director General of Health Services granted exemption certificates. Referring to the notice dated 18.12.1997 (Annexure -20) he submitted that the medical equipments in question were imported against the Bills of Exchange in the year 1993 which were allowed clearance free of duty provisionally on the basis of such certificates and on execution of Provisional Duty assessment Bonds, executed by the petitioners, binding them to pay on demand the duty finally assessed and the show cause notice about withdrawal of the exemption certificates was issued on 9.6.1997. He further submitted that the grant of exemption certificates itself were void ab initio as the petitioners never fulfilled the conditions of the exemption notification, and accordingly they were withdrawn. Referring to a copy of the order dated 18.10.1996, passed by the Delhi High Court in a PIL -(CW (F) No. 409 of 1996, referred in the counter affidavit), he submitted that the grant of exemption certificates in favour of petitioners and others itself remained under clouds of doubt. (A copy of the said order is kept on the record.) He also submitted that the said PIL was filed complaining large scale bungling in grant of such Custom Duty Exemption Certificates causing loss of several thousand crores of rupees to the public exchequer; and for taking actions against the erring officials. On 23.5.1996, the Delhi High Court constituted a Committee to enquire into the matter. The committee prima facie found that the allegations of large -scale corruption in the offices of Director General of Health Services and the customs department were correct. Accordingly, two committees were constituted, one for action required to be taken under the Customs Act and other for dealing with the aspect of corruption. Admittedly, petitioners also received notices from the committee constituted pronounced on 15.9.1997 in the case of Faridabad Ct. Scan overruling part of Mediwell (Supra). He further pointed out that petitioners have been delaying the disposal of this writ petition and it. was ordered on 4.5.2006 that the interim order of stay dated 27.1.1998 will be subject to the provisions of Section 28AA/28AB of the Customs Act, 1962.