Court orders final assessment without interest, releases bank guarantee, petitioner's contentions open.

The court disposed of the writ petition directing the respondents to pass a final assessment order without levying any interest and to release the bank guarantee furnished by the petitioner. All contentions of the petitioner on the assessment were expressly kept open.

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Issues Involved:
1. Legality and validity of Customs Notification No. 26/2009 and Preliminary Findings dated 02.02.2009.
2. Absence of rules for assessment and collection of safeguard duty under Section 8C of the Customs Tariff Act, 1975.
3. Interim relief and protection of revenue.
4. Applicability of interest under Section 28AA of the Customs Act.

Summary:

Issue 1: Legality and Validity of Customs Notification No. 26/2009 and Preliminary Findings dated 02.02.2009
The petitioner challenged the Customs Notification No. 26/2009 dated 23.03.2009 and Preliminary Findings dated 02.02.2009 under Article 226 of the Constitution of India, seeking to quash and set aside the impugned notification and findings. The petitioner contended that no rules were framed by the respondents as required under Sub-section 6 of Section 8C of the Customs Tariff Act, 1975.

Issue 2: Absence of Rules for Assessment and Collection of Safeguard Duty
The petitioner argued that in the absence of rules for assessment and collection of safeguard duty, the authorities under the Customs Act had no jurisdiction to collect such duties. The court noted that Section 8C(6) of the Customs Tariff Act allowed the Central Government to make rules for the assessment and collection of safeguard duty, but such rules were not made, rendering the provisions for assessment and collection of duty otiose.

Issue 3: Interim Relief and Protection of Revenue
An interim relief was granted by the court on 8th May 2009, allowing the petitioner to import goods covered by the Notification, subject to furnishing a bond without a bank guarantee. The interim order was modified on 11th June 2010, directing the petitioner to furnish a bank guarantee to the extent of 50% of the amount covered by the bond. The court observed that the respondents did not pass a final assessment order for almost 13 years and did not move the court for permission to pass such an order.

Issue 4: Applicability of Interest under Section 28AA of the Customs Act
The petitioner apprehended that they might be subjected to the levy/payment of interest under Section 28AA of the Customs Act in the final assessment order. The court held that the petitioner should not be foisted with interest under Section 28AA, as the interim orders never precluded the respondents from approaching the court to finalize the assessment. The court directed the respondents to pass a final assessment order without levying any interest and to release the bank guarantee within six weeks.

Conclusion:
The court disposed of the writ petition directing the respondents to pass a final assessment order without levying any interest and to release the bank guarantee furnished by the petitioner. All contentions of the petitioner on the assessment were expressly kept open.

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