2002 (6) TMI 49 - HC - Customs

Court orders deposit of refund amount by respondents, failure leads to bank guarantee discharge & interest

VIRENDRA KUMAR GANDHI Versus UNION OF INDIA

VIRENDRA KUMAR GANDHI Versus UNION OF INDIA - 2002 (143) E.L.T. 508 (Bom.) Issues Involved:1. Direction sought for refund of deposited amount based on Commissioner's order.2. Allegation of wrongful involvement in duty evasion by the petitioners.3. Failure to act on Commissioner's order for refund.4. Dispute over refund between petitioners and Respondent Nos. 1, 2, and 3.5. Appeal process and stay application in relation to the Commissioner's order.6. Consideration of legal provisions for refund application and appeal process.7. Decision on refund and direction for depositing the amount in court.Analysis:1. The petition requested directions for Respondent Nos. 1, 2, and 3 to comply with the Commissioner's order from April 18, 2001, to return the deposited amount of Rs. 2,00,30,000. The first petitioner, a director of a company, deposited this amount based on alleged threats and coercion due to his supposed involvement in duty evasion by Respondent Nos. 4 and 5. The Commissioner's order concluded that no duty was demandable from the petitioners and directed the refund, which was not implemented, leading to the filing of this petition.2. The petitioners claimed they were wrongly implicated in the duty evasion scheme and were indirectly linked through a third party. The Commissioner's order absolved them of any duty liability and directed the refund. The petitioners' involvement was found to be non-existent in the evasion, and the duty was confirmed only against the actual evaders, not the petitioners.3. Despite multiple demands for refund, Respondent Nos. 1, 2, and 3 failed to act on the Commissioner's order for over a year, prompting the petitioners to seek judicial intervention for the enforcement of the refund directive.4. The dispute revolved around the refusal of Respondent Nos. 1, 2, and 3 to refund the deposited amount to the petitioners despite the Commissioner's clear order absolving the petitioners of any duty liability. The petitioners sought the court's assistance in securing the refund rightfully due to them.5. The legal process involved an appeal by Kunal Overseas Limited, one of the respondents, against the duty liability determined by the Commissioner. The Tribunal's decision on the stay application highlighted the amount deposited by the petitioners and concluded the duty payable by Kunal Overseas Limited, emphasizing the separation of the two financial obligations.6. The legal representatives of the parties discussed the applicable legal provisions for refund applications and appeal procedures under the Customs Act, 1962. The need for compliance with the Commissioner's order and the potential filing of appeals were key considerations in the court's decision-making process.7. The court, after thorough consideration, directed Respondent Nos. 1, 2, and 3 to deposit the refund amount in court within a specified timeframe. The court outlined the conditions for withdrawal by the petitioners, including the provision of a bank guarantee, and set a deadline for filing an appeal. Failure to comply with the directives would result in the discharge of the bank guarantee and the refund amount being held in court with interest.This detailed analysis covers the key issues, arguments, and legal considerations involved in the judgment, providing a comprehensive understanding of the case and the court's decision.