1997 (10) TMI 75

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....de duly transferable by the licensing authority as per the provisions of paragraph 67 of the Import Export Policy 1992-97 to the extent of U.S. $ 159,375.00 only. The item imported by the petitioner's concerns duly figures in the licence i.e. Titanium Dioxide, Rutile Grade. The licence also permitted import of other items. The DGFT authorities have also issued a clarification that the item imported by the petitioner's concerns is an essential raw material for the paint industry especially for synthetic white colour paints and is used for importing opacity and exterior durability to the paint. It was, therefore, categorically held by the DGFT that Titanium Dioxide, Rutile Grade cannot be treated as a pigment and is hence not covered under th....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....5% of the duty amount for each consignment imported by them. Totally, 7 consignments were imported by the petitioner's concerns for which bank guarantee amounting to Rs. 9,81,488/- have been executed and are lying with the 4th respondent and only thereafter the goods were allowed to be cleared by the 4th respondent. (e) The 3rd and 4th respondents thereafter preferred an Appeal before the CEGAT i.e. the 2nd respondent and also preferred a stay application which stay application was dismissed by a speaking order dated 11th April, 1996. Despite specific liberty having been granted to the Department to move for earlier hearing of the Appeal, no such application has been filed. On the contrary, to perpetuate the illegality, the bank guarante....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....were released. However, it is pointed out that as the appeal filed by the respondents is pending before the Tribunal and in the event the respondents succeed finally in the appeal, it would be difficult for the respondents to recover huge amount of duty from the petitioner which is estimated at Rs. 40 lacs from the petitioner if the bank guarantee furnished by the petitioner is not renewed. It is, therefore, prayed that this Court should not interfere at this stage. It is also pointed out if the bank guarantee furnished by the petitioner is kept valid and subsisting till the appeal is decided, it would not prejudice the petitioner in any way. 6. As against this, the learned Counsel for the petitioner submitted that for keeping the bank g....