KEI INDUSTRIES LTD. v. UNION OF INDIA & ORS.

Delhi High Court · 29 Jan 2016 · 2016:DHC:9280-DB
S. Muralidhar; Vibhu Bakhru
W.P.(C) 741/2016
2016:DHC:9280-DB
administrative appeal_allowed Significant

AI Summary

The Delhi High Court set aside customs duty orders and remanded for fresh adjudication after the petitioner submitted Export Obligation Discharge Certificates, rendering pending appeals infructuous.

Full Text
Translation output
HIGH COURT OF DELHI
W.P.(C) 741/2016
KEI INDUSTRIES LTD. Petitioner
Through: Mr Vinay Garg, Mr Rajesh Yadav and Mr Uday Singh, Advocates.
VERSUS
UNION OF INDIA & ORS. Respondents
Through: Mr Jasmeet Singh, CGSC, Mr Dev P.
Bhardwaj,CGSC with Ms Pallavi Shali, Advocates for Respondent Nos.l & 5.
Mr Satish Kumar, Senior Standing Counsel with
Mr Agrim Bhasin, Advocate for Respondent Nos.2, 3 & 4.
55.
AND
W.P.(C) 757/2016
KEI INDUSTRIES LTD. Petitioner
Through: Mr Vinay Garg, Mr Rajesh Yadav and Mr Uday Singh, Advocates.
VERSUS
UNION OF INDIA & ORS. Respondents
Through: Mr Jasmeet Singh, CGSC with Ms Pallavi Shali, Advocates for Respondent Nos. 1
&5.
Mr Satish Kumar, Senior Standing Counsel with
Mr Agrim Bhasin, Advocate for Respondent Nos.2, 3 & 4.
CORAM:
JUSTICE S.MURALIDHAR JUSTICE VIBHU BAKHRU W.p.(C) 741/2016 1of4
2016:DHC:9280-DB
29.01.2016 CM No.3155/2016 in W.P.IQ 741/2016
CM No.3283/2016 in W.P.(C) 757/2016
ORDER

1. Allowed, subject to all just exceptions.

2. The application stands disposed of. W.P.(C) 741/2016 & CM No.3154/2016 W.P.(C[1] 757/2016 & CM No.3282/2016

3. Notice. Learned counsel for the Respondents accepts notice. With the consent of learned counsel for the parties, the writ petition is taken up for final hearing.

4. The Petitioner obtained three advance licences for duty free import ofraw material. It is stated that on account of its non-submission of Export Obligation Discharge Certificate (EODC) which was to be issued by the Director General of Foreign Trade (DGFT), the Assistant Commissioner of Customs issued three Show Cause Notices (SCNs) to the Petitioner demanding customs duty. The said demands were confirmed and penalty imposed by the three separate orders. The appeals filed by the Petitioners were disposed of by a common order dated July, 2015. While in one appeal the demandwas set aside, the othertwo appeals were dismissed. It is stated that the appeals filed by the Petitioner against the said order are pending before the CESTAT and lying in defect due to non-payment of the pre-deposit amounts in terms of Section 129E ofthe Customs Act, 1962.

5. It is stated that in the meanwhile, the Petitioners has received the EODC W.P. (C) 741/2016 Page[2] of[4] in respect of the two advance licences on 20*^^ October, 2015 and 19^^ November, 2015 and have submitted them to the Commissioner of Customs.

6. In similar circumstances, this Court has by an order dated 25^*^ August, 2015 in W.P.(C) 7896/2015 (Jonson Rubber Industries Ltd. v. Union of India) set aside the order in original and remanded the matter to the Adjudicating Authority for examining the matter afresh "after taking into consideration the EODC which has now been obtained by the Petitioner" A similar order has also been passed on 12'*^ January, 2016 in W.P.(C) 10031/2015 (Lifelong India Private Limited v. Union ofIndia & Anr.).

7. Considering that the Petitioner has obtained EODCs from the DGFT in respect ofthe two Advance Licences in question on 20'*^ October, 2015 and 19^ November, 2015, the orders-in-original dated 28^*^ March, 2014 in respect ofthe two Advance Licences Nos.0510186581 dated 13"^ July, 2006 and 0510203035 dated 27^*^ April, 2007 are hereby set aside. The corresponding orders in appeal passed by the Commissioner (Appeals) dated My, 2015 are also hereby set aside. The Adjudicating Authority, i.e. the Deputy Commissioner ( Respondent No.3 herein) is directed to adjudicate the SCNs issued to the Petitioner in respect of their aforementioned two Advance Licences afresh after taking into account the EODCs obtained by the Petitioner from the DGFT.

8. The Petitioner is permitted to bring this order to the notice of the CESTAT to urge that the Petitioner's two pending appeals have been rendered infiaictuous. W.P. (C) 741/2016 Page 3 of[4] u

9. The petitions are disposed of in the above terms.

10. Order dasti.

JANUARY 29, 2016 MK^ W.P.(C) 741/2016 S.MURALIDHAR, J VIBHU BAKHRU, J Page 4 of[4]