2008 (8) TMI 1021 - HC - Customs

Court grants interim relief to allow goods entry without export duty payment pending security provision

The court granted ad-interim relief restraining the respondent from refusing admission of goods due to non-payment of export duty, subject to the ... Interim relief - ad-interim restraint on refusal of admission/entry of goods - payment under protest - bond / corporate surety and bank guarantee as condition for relief - parity with earlier ordersAd-interim restraint on refusal of admission/entry of goods - bond / corporate surety and bank guarantee as condition for relief - interim relief - Petitioners entitled to ad-interim relief restraining respondent from refusing admission/entry of goods supplied by Domestic Tariff Area units solely on ground of non-payment of export duty, subject to specified security. - HELD THAT: - The Court considered rival submissions: respondents relying on payment of export duty under protest and arguing absence of exigency, while petitioners urged imminent completion of construction and potential irreparable loss from delayed steel supplies, seeking the same interim protection earlier granted in petitions involving identical questions. Exercising its discretion, the Court issued rule and granted ad-interim relief in the terms of paragraph 24 C(ii), restraining respondent No.4 from refusing admission/entry of the petitioners' goods on the sole ground of non-payment of export duty, provided the petitioners furnish a Bond or Corporate Surety and a Bank Guarantee amounting to ten per cent of the supply value. The Court applied parity with earlier orders in Special Civil Application Nos.9656 & 9713 of 2008 and allowed a temporary undertaking in lieu of the Bank Guarantee where procurement is impeded by intervening holidays, to be replaced by the Bank Guarantee by a specified date.Rule issued; ad-interim relief granted restraining respondent No.4 from refusing admission/entry of goods on the ground of non-payment of export duty, subject to Bond/Corporate Surety and 10% Bank Guarantee; undertaking permitted short-term if BG cannot be immediately procured.Final Conclusion: The petitions were granted ad-interim relief on the same terms as earlier similar petitions: respondent No.4 is restrained from denying admission/entry of goods supplied by DTA units solely for non-payment of export duty, conditional on the furnishing of bond/corporate surety and a 10% bank guarantee, with a limited interim undertaking permitted for procuring the guarantee. Issues involved: Grant of interim relief in petitions challenging refusal of admission of goods due to non-payment of export duty.In the judgment, the Honorable Mr. Justice K.A. Puj heard arguments from both sides. The Respondent argued that there were distinguishing features in the petitions and no immediate interference was required as the petitioner had paid export duty under protest. On the other hand, the Petitioner's Counsel argued that delay in supplies of steel items would cause immense loss as construction was on the verge of completion. The Court granted ad-interim relief restraining the respondent from refusing admission of goods based on non-payment of export duty, subject to the petitioners furnishing a Bond or Bank Guarantee of 10% of the supply value. This relief was granted in line with previous similar petitions where ad-interim relief had been provided. The petitioners were given a deadline to furnish the Bank Guarantee, and the next hearing was scheduled for a later date.