2022 (4) TMI 865 - HC - GST

Initial and completion of final assessment proceedings within a reasonable time period - seeking release of Bank Guarantees - direction to respondent to return the amount deposited by the petitioner in favour of the petition - compensation to petitioner for monetary losses suffered by petitioner due to bank guarantee charges - permission to petitioner to sell their machines - grievance of the writ-applicant is that the final assessment proceedings are yet to be undertaken - HELD THAT - The merits of this litigation, need not be entered, as the issue is still at large before the Assistant Commissioner, Vadodara. The only concern is the delay that has occurred in the present litigation in finalizing the assessment proceedings. The Assistant Commissioner of Central Excise, Vadodara is directed to immediately take up the matter and see to it that the assessment proceedings are concluded finally with an appropriate order of assessment in accordance with law within a period of two (02) months from the date of the receipt of the writ of this order. Application disposed off.

Summary

Issues:
Delay in finalization of assessment proceedings and release of bank guarantees, bank guarantee charges, compensation for monetary losses, permission to sell machines, and any other relief deemed fit.

Delay in Finalization of Assessment Proceedings:
The writ-applicant sought various reliefs, including mandamus to initiate and complete final assessment proceedings, release bank guarantees, return deposited amount, compensate for monetary losses, and permit the sale of machines. The Deputy Commissioner of Customs had addressed a letter regarding finalization of assessment related to a contract under Project Import Regulations, 1986. The writ-applicant sent reminders to the Assistant Commissioner and Commissioner CGST regarding the pending final assessment. The writ-application highlighted that bill of entries were provisionally assessed between 1995-1997 but are still pending final assessment, causing monetary losses. The court directed the Assistant Commissioner to conclude the assessment proceedings within two months and requested prompt document submission by the writ-applicant if needed.

Release of Bank Guarantees:
The writ-applicant had executed bank guarantees and deposited an amount with Customs Authorities, seeking their release. The bank guarantees, totaling a significant amount, had been extended since 1995 and 1996, incurring substantial bank guarantee charges. The court acknowledged the delay in finalizing assessment proceedings and directed the Assistant Commissioner to conclude the assessment within two months, implying that the release of bank guarantees would be facilitated upon completion of the assessment.

Bank Guarantee Charges and Compensation for Monetary Losses:
The writ-applicant had incurred substantial bank guarantee charges totaling to a specific amount due to the extended bank guarantees. The court recognized the monetary losses suffered by the writ-applicant and directed the Assistant Commissioner to finalize the assessment proceedings promptly. The order implied that compensation for the monetary losses would be considered as part of the assessment process.

Permission to Sell Machines:
One of the reliefs sought by the writ-applicant was permission to sell their machines. The court did not provide a specific directive regarding this relief in the judgment. However, the general direction to conclude the assessment proceedings promptly could indirectly impact the permission to sell machines, as a favorable assessment outcome might facilitate such a sale.

Other Relief Deemed Fit:
The writ-applicant requested additional relief deemed fit in the interest of justice. While the judgment did not specify any other relief granted, the court's directive to conclude the assessment proceedings promptly encompassed addressing all the reliefs sought by the writ-applicant. The judgment disposed of the writ-application and permitted direct service, indicating the finality of the court's decision on the matter.

This detailed analysis outlines the key issues raised in the legal judgment, the relevant facts presented, and the court's directives and considerations concerning each issue.