2018 (11) TMI 582 - HC - Customs

Principles of natural justice - the applicants/original petitioners refused to answer or to appear pursuant to the summons so issued - Held that - The issue is writ-large before the authority and the applicants/original petitioners are duty bound to cooperate with the authorities. S.O. to 02.11.2018. Ad interim relief granted earlier to continue till further orders.

Summary

Issues:
- Compliance with court order regarding summons and cooperation with authority
- Dispute over imported fuel classification as Base Oil SN 50 or high speed diesel
- Request for protection against coercive action including arrest
- Directions issued by the court regarding provisional release of seized goods and cooperation with ongoing investigation

Compliance with Court Order and Cooperation with Authority:
The judgment addresses the issue of compliance with a court order regarding summons and cooperation with the authority. The respondent argues that the applicants refused to answer or appear after summons were issued, while the applicants express readiness to appear but seek protection against coercive action. The court emphasizes the duty of the applicants to cooperate with the authorities and directs the respondent to provide dates for the applicants to appear before the court.

Dispute over Imported Fuel Classification:
The judgment delves into a dispute over the classification of imported fuel as Base Oil SN 50 or high speed diesel. The department's laboratory initially identified the substance as high speed diesel, but the petitioners contested this based on flash point discrepancies. The court ordered retesting at a notified laboratory at the petitioners' cost and directed the petitioners to deposit a sum for testing expenses. The court also instructed the department not to take coercive action pending investigation, provided the petitioners cooperate.

Request for Protection Against Coercive Action:
The judgment records the applicants' request for protection against coercive action, including arrest, when responding to summons. The applicants express willingness to appear before the authority but fear coercive measures. The court notes this concern and emphasizes the need for the applicants to cooperate with the ongoing investigation.

Directions Issued by the Court:
The judgment outlines directions issued by the court regarding provisional release of seized goods and cooperation with the investigation. The court directs the competent authority to consider representations for provisional release or re-export of seized goods. It also mandates that the petitioners be given reasonable time and an opportunity for a hearing before any order is passed. The court sets a deadline for the petitioners to make representations, emphasizing the importance of following due process and legal procedures.