COMMISSIONER OF CUSTOMS Vs. DIPLOMAT GARMENT (PVT.) LTD.

JUDGEMENT

(1.) This petition for leave to appeal is directed against the judgment and order dated 25.5.2006 passed by a Division Bench of the High Court Division in Writ Petition No. 6883 of 2005 making the rule absolute.

(2.) The short fact leading to the filing of the writ petition is that the writ-petitioner being engaged in the business of manufacturing 100% export oriented Garments required to import raw materials namely, fabrics and accessories for manufacturing and exporting its garment products and accordingly obtained a licence for setting up a bonded warehouse for storing its raw materials imported by opening back-to-back letter of credit against master Letters of Credit sent by its foreign buyers from time to time. The imported goods were stored without payment of the required customs duty, tax and other charges after proper declaration submitted with the authority and released from the warehouse for use for manufacturing the garment products, in phase, which were exported against the master letters of credit in normal course. The respondent received a notice under Memo No.5-12/Cus (175) Group-5/Forgery/ 01/6357 dated 26.8.2001 demanding payment of Tk. 2,14,50,715.00 on the ground that the corresponding exports were not made against the aforesaid goods imported and those imported goods were sold in the local market and thereby the Government was deprived of the tax payable against the imported goods. The respondent then moved Writ Petition No. 4500 of 2001 in the High Court Division wherein the rule was issued but ultimately the rule was discharged holding the same to be premature. The respondent thereafter unsuccessfully moved the Appellate Division in Civil Petition for Leave to Appeal No.1346 of 2003. The respondent therefore submitted Utilization Declaration (UD), Proceed Realization Certificate (PRC), Pass Book (Import), Pass Book (Export) and Audit Report relating to the concern I.C. being No. 99003/TST/S dated 1.6.1999 and KW 230052 dated 4.6.1999 together with the reply to the show cause notice dated 28.6.2001. But the customs authority rejected the respondents' claim of export and issued the impugned demand notice dated 29.8.2005. The respondent then filed the aforesaid writ Petition No. 6883 of 2005 under consideration challenging the said demand notice dated 29.8.2005 and obtained rule which was subsequently made absolute by the impugned judgment dated 25.5.2006.

(3.) The petitioner being dissatisfied with the impugned judgment dated 25.5.2006 filed this civil petition for leave to appeal.