Madras High Court
M/S.J.A.Apparels vs Customs on 14 November, 2018
Author: C.Saravanan
Bench: C.Saravanan
1
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED: 14.11.2018
CORAM:
THE HONOURABLE MR.JUSTICE C.SARAVANAN
W.P.(MD) No.6450 of 2014
and M.P.(MD).No.1 of 2014
M/s.J.A.Apparels
Rep. by its Proprietor
Mr.K.Jayakumar,
No.10, Poothottam, VOC Nagar,
Murugampalayam Extn.,
Tirupur 641 603. ... Petitioner
vs.
1.Customs, Excise and Service
Tax Appellate Tribunal,
South Zonal Bench, 26, Haddows Road,
Shastri Bhawan Annexe, 1st Floor,
Chennai 600 006.
2.The Commissioner of Customs,
Custom House, New Harbour Estate,
Tuticorin 628 004.
3.The Assistant Commissioner of Customs,
Arrears Recovery Cell,
Custom House, New Harbour Estate,
Tuticorin 628 004. ... Respondents
PRAYER : Writ Petition filed under Article 226 of the Constitution of India
for issuance of Writ of Mandamus, directing the 2nd respondent herein to
return the Bank Guarantee bearing No.3/2013, dated 20.03.2013, for Rs.
7,50,000/- and Bank Guarantee bearing No.6/2013, dated 22.03.2013 for
Rs.7,50,000/-.
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For Petitioner : Mr.A.K.Jayaraj
For Respondents : Mr.R.Aravindan
Standing counsel
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ORDER
This Writ Petition has been filed for the issuance of a Writ of Mandamus directing the 2nd respondent to return the Bank Guarantee bearing No.3/2013, dated 20.03.2013, for a sum of Rs.7,50,000/- and Bank Guarantee bearing No.6/2013, dated 22.03.2013 for a sum of Rs.7,50,000/-.
2.The learned counsel for the petitioner submits that its exports were being stalled by the officers of the 2nd and 3rd respondent during January and February 2013 in view of the order-in-original NO.37/12 dated 30.08.2012. By the said order, the original authority had rejected the classification adopted by the petitioner. The goods were ordered to be confiscated under Section 111(1) and 111(m) of the Customs Act, 1962. Option was given to redeem the same on payment of fine of Rs.4,75,000/- under Section 125 of the Customs Act, 1962. The petitioner was also imposed with penalty of Rs.14,69,891/-.
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3.The petitioner thereafter preferred an appeal before the Commissioner of Customs (Appeals), by order in Appeal No.87 of 2012 dated 14.12.2012 upheld the order in Original No.37/12 dated 30.08.2012. Since the export consignments were being upheld, the petitioner filed W.P. (MD) No.3178 of 2015 before this Court. This Court, by an order dated 28.02.2013, directed the petitioner to furnish bank guarantee for a sum of Rs.7,50,000/- to the satisfaction of the first respondent and on providing such bank guarantee, the respondents were directed to permit the petitioner to export the consignments.
4.In the meanwhile, the petitioner preferred appeal No.C/40358/2013 before the 1st respondent and by a Final Order No.41019/2014 dated 23.12.2014, the 1st respondent Tribunal reduced the redemption fine and penalty of R.2 lakhs respectively to be paid within 6 weeks from the date of order and on such payment, the petitioner was entitled to clear the goods which were originally seized and confiscated by the 2nd and 3rd respondents.
5.As the petitioner has succeeded before the Tribunal, the petitioner is entitled to for the relief subject to the petitioner complying with the directions of the 1st respondent in Final Order No.41019, which reads as under:
http://www.judis.nic.in 4 “2.Considering the co-operative attitude of the appellant, to reduce litigation, appellant is directed to deposit the duty with the customs authority with the redemption fine of Rs.2,00,000/- (Rupees two lakhs only) and penalty of Rs.2,00,000/- (Rupees two lakhs only) within two weeks from today and make an application with challan enclosed, before Customs Authority for clearance of the goods expeditiously.
3.On production of the challan and the application as directed above, the customs authority shall clear the goods and reduce the litigation.”
6. In view of the above order passed by the CESTAT, Chennai, ends of justice will be met, if the respondents are directed to return the two bank guarantees to the petitioner subject to the petitioner paying the penalty of Rs.2,00,000/- with a liberty also to pay the redemption fine of Rs. 2,00,000/- as per the order of CESAT to take delivery of the seized cargo or abandon the same.
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7. With the above directions, this Writ Petition is disposed. No costs. Consequently, connected miscellaneous petition is closed.
14.11.2018 Index : Yes / No Internet: Yes / No Arul To:
1.Customs, Excise and Service Tax Appellate Tribunal, South Zonal Bench, 26, Haddows Road, Shastri Bhawan Annexe, 1st Floor, Chennai 600 006.
2.The Commissioner of Customs, Custom House, New Harbour Estate, Tuticorin 628 004.
3.The Assistant Commissioner of Customs, Arrears Recovery Cell, Custom House, New Harbour Estate, Tuticorin 628 004.
http://www.judis.nic.in 6 C.SARAVANAN, J.
Arul W.P.(MD) No.6450 of 2014 and M.P.(MD).No.1 of 2014 14.11.2018.
http://www.judis.nic.in