Gujarat High Court
Essar Steel India Ltd vs Union Of India & on 20 February, 2013
Author: Akil Kureshi
Bench: Akil Kureshi
ESSAR STEEL INDIA LTD....Petitioner(s)V/SUNION OF INDIA C/SCA/1976/2013 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD SPECIAL CIVIL APPLICATION NO. 1976 of 2013 ================================================================ ESSAR STEEL INDIA LTD....Petitioner(s) Versus UNION OF INDIA & 4....Respondent(s) ================================================================ Appearance: NANAVATI ASSOCIATES, ADVOCATE for the Petitioner(s) No. 1 ================================================================ CORAM: HONOURABLE MR.JUSTICE AKIL KURESHI and HONOURABLE MS JUSTICE SONIA GOKANI Date : 20/02/2013 ORAL ORDER
(PER : HONOURABLE MR.JUSTICE AKIL KURESHI) The petitioner has imported various consignments of different items which have been landed at Magdalla port, Surat, details of which are as under :
Sr. NO.
Job No./ Vessel name Bill of Entry No. Date Cargo Description Quantity(MT) Assessable Value (Rs.) Duty assessed (Rs.) Duty payable(Rs.) Duty paid (Rs.) Remarks 1 2570001/ Tvisha 9326409 15.02.13 Dolomite (size: 10-40MM) 12884.000 15356968 1436798 1436798
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Duty payment pending, OOC pending 2 2566168/ Guotou303 9301885 13.02.13 Sishen 63% Iron Ore Lump 30000.000 246451756 48965687
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48965687 Duty paid, OOC pending 3 2566947/ Guotou303 9305288 13.02.13 Sishen 63% Iron Ore Lump 30915.000 253989145 50459140 50459140
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Duty payment pending, OOC pending 4 2570224/ Port Canton 9332698 16.02.13 Carbon Steel Slabs 12410.125 308522763 foregone
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Bll of Entry filed & noted 5 2570240/ Port Canton 9332705 16.02.13 Carbon Steel Slabs 18571.160 461689596 foregone
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Bill of Entry filed & noted It is the case of the petitioner that for the goods at serial no. 1 to 3, respondents have provisionally assessed the goods. The petitioner had already paid up such provisionally assessed duty in case of goods at serial no.2 and with respect to other two consignments, the petitioner would be making such payment shortly. In case of goods at serial no. 4 and 5, no provisional assessment has been made. Case of the petitioner is that such goods would not invite any duty liability since the same have been imported under duty free license subject of-course to fulfilling export obligations.
It is the case of the petitioner that the respondents are not allowing the clearance of goods only on the ground that as per the respondents, the petitioner is required to pay higher duty on five previous consignments of coal imported by the petitioner with respect to which there is dispute of classification between the petitioner and the department. Counsel submitted that such consignments were cleared under provisional assessment after fulfilling the conditions set out by the department. Detention of the goods on such ground therefore, is wholly impermissible.
It is further submitted that non clearance of goods has severely affected the production activity of the petitioner company and also in some cases results into heavy demurage charges.
With respect to goods at serial no. 2 and 3, it is pointed out that owing to the nature of material, it is not possible to clear the goods being first offloaded from the ship and thereafter, reloading for the purpose of transport. Instead there are conveyance belt on which such material is placed and carried directly to the factory.
Under the circumstances, following ad interim relief is granted :
Respondents shall permit clearance of 50% of the goods mentioned at serial no.1 noted above, subject to fulfillment of requirements of clearance and payment of duty as provisionally assessed by the respondents. This shall be done as soon as such formalities are completed.
Out of the two consignments mentioned at serial no.2 and 3, respondents shall permit clearance of one of them at the discretion of the petitioner upon depositing of the full provisional duty assessed with respect to both the consignments and fulfilling other procedural requirements of clearance.
With respect to goods mentioned at serial no. 4 and 5, the respondents shall complete the provisional assessment without any further delay and place the same before us on the next date of hearing.
Since the issues are of great urgency, it may be useful for the department to depute a senior officer to instruct their counsel at the time of next hearing.
Notice returnable on 22.2.2013.
Direct service today is permitted.
(AKIL KURESHI, J.) (MS SONIA GOKANI, J.) raghu Page 4 of 4