TaxTMI 
TaxTMI 
2001 (12) TMI 486
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....ted 13-11-1989 and 30/89, dated 2-11-1989 regarding duty confirmed on fabrics and refund claim of Rs. 53,858/- respectively. 2. The facts of the case are that the appellants were approved for setting up a unit in Kandla Free Trade Zone in the year 1964 for weaving and printing of yarn, fabrics, printing, dyeing, crayon etc. and manufacture of mixed fabrics. The appellant after establishing their unit in Kandla, imported several consignments of yarn totaling about 17670 kgs. valued about Rs. 2,31,800/-. It was alleged by the appellants that the manufactured fabrics, using portion of the imported raw materials and exported 710 kgs. of manufactured fabrics. The importation, it is alleged, had taken place at Bombay Port during December, 1....
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....es that due to litigation, the goods held on stock became substandard and on inspection by Textile Committee, it was found that the goods were not fit for export. The appellant moved Gujarat High Court by filing Special Civil Application No. 1188/80, [1987 (27) E.L.T. 266 (Guj.)] against the orders of the Development Commissioner, KFTZ challenging confiscation. By order dated 9th August, 1986, the Gujarat High Court set aside that order of confiscation. Special Leave Petition was filed by the Government in the Supreme Court against this order. The Supreme Court was pleased to hold that the direction by the High Court of Gujarat for release of stale and unexportable goods found subject matter of the Special Leave Petition on payment of duty ....
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....re us would reiterate what is contained in both the orders. 4. We have considered the rival submissions. It is pertinent to refer to certain orders passed by the Courts. In the Special Leave Application No. 1188/80, on August 9, 1985, [1987 (27) E.L.T. 266 (Guj.) the Gujarat High Court passed orders on the following terms :- "Right from 1968 to 1985 much water has flown beneath the bridge and the situation has totally changed. In the period of sixteen years, the goods must have become qualitatively deteriorated considerably and must have become totally unfit for export. It is truism to state that the Export Board would never permit export of such stale goods. So, the only course left open to the Customs authorities is to release thes....
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....ts. We consider this request to be reasonable and we direct that the duty may be paid in three equal instalments and as against the payment of each instalment a proportionate quantity of the goods will be released. The parties will bear their respective costs. The contempt petition C.H.P. No. 30550 of 1986 filed by the respondent will stand dismissed as withdrawn." 6. In the order of the Supreme Court, it is very clear that the request of the department was to be reasonable one and the Court specifically directed that the duty may be paid in three equal instalments as against the payment of each installment a proportionate quantity of the goods in the very least. We have to see whether in the teeth of the said direction, there can by ....