2010 (6) TMI 477 - HC - Customs

Extension of the warehousing period - Interest on warehoused goods - The delay in clearance of goods was occasioned on account of the classification dispute - Held that - when the petitioner had not been able to show reasons and circumstances beyond its control for seeking re-extension, no infirmity can be found in the impugned order of the Chief Commissioner in not extending the warehousing period. - Except for stating that the delay had been caused by the respondents, no specific averments have been made to point out as to how the respondents are responsible for delay, or as to how the factual findings recorded by the Chief Commissioner are erroneous. In the circumstances, the petitioner has not been able to point out any prejudice on account of non-supply of the said reports. - etitioner is not entitled to the relief prayed for in the petition.

Summary

Issues Involved:
1. Amendment to the original petition.
2. Quashing and setting aside the order rejecting the extension of the warehousing period and waiver of interest.
3. Restraining further proceedings on show cause notices.
4. Interim reliefs pending the petition.
5. Extension of warehousing period and waiver of interest under Section 61 of the Customs Act, 1962.

Detailed Analysis:

1. Amendment to the Original Petition:
The learned advocate for the petitioner tendered a draft amendment to the original petition. However, the court rejected the amendment, noting that it sought to enlarge the scope of the original petition.

2. Quashing and Setting Aside the Order Rejecting Extension of Warehousing Period and Waiver of Interest:
The petitioner sought a writ of mandamus to quash and set aside the order rejecting the application for extension of the warehousing period and waiver of interest. The court examined the facts and found that the petitioner had not provided specific reasons justifying further extension beyond the general business-related reasons. The Chief Commissioner had relied on Section 61 of the Customs Act and Board Circular No. 47/2002-Cus. dated 29th July 2002, concluding that the petitioner's reasons were not exceptional circumstances warranting an extension.

3. Restraining Further Proceedings on Show Cause Notices:
The petitioner also sought to restrain the respondent from proceeding with show cause notices dated 5-9-06 and 13-11-06. The court did not find merit in this request, as the show cause notices were not the subject matter of the present petition.

4. Interim Reliefs Pending the Petition:
The petitioner requested interim reliefs, including staying the operation of the order rejecting the extension and waiver of interest and restraining further proceedings on show cause notices. The court had earlier passed an interim order allowing the petitioner to make a fresh application for extension and waiver of interest, which the Chief Commissioner subsequently rejected.

5. Extension of Warehousing Period and Waiver of Interest under Section 61 of the Customs Act, 1962:
The court analyzed the application for extension and waiver of interest under Section 61 of the Customs Act. The Chief Commissioner granted waiver of interest only up to 17th March 2006, noting that the petitioner had not demonstrated any compelling reasons beyond its control for further extension. The court upheld this decision, stating that financial difficulties or delays due to the petitioner's actions do not constitute exceptional circumstances under the Act. The Chief Commissioner's reliance on reports from the Commissioner of Customs and Additional Commissioner of Customs was deemed appropriate, and the petitioner's failure to challenge the factual findings in these reports further weakened their case.

Conclusion:
The court concluded that the petitioner had not made out a case for further extension of the warehousing period or waiver of interest beyond 17th March 2006. The reasons provided by the petitioner were deemed insufficient and not beyond their control. Consequently, the petition was rejected, and the interim relief granted earlier was vacated.