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Issues:
Classification of imported goods under Customs Tariff Heading, benefit of Exemption Notification, rejection of duty payment offer under protest, failure of Respondent to comply with Court's order. Analysis: The Writ Petitioners, a partnership firm dealing in Alloy Steel Items, imported Electric Resistance Strips in April 1990, claiming them to fall under Customs Tariff Heading 7226.99 and eligible for exemption under Notification No. 81/90-Cus. Dispute arose when Respondents classified the goods as Stainless Steel under Heading 7220.90, increasing duty to 100% ad valorem. Despite presenting certificates supporting their claim, Respondents rejected their classification, leading to a petition seeking declaration of the goods as Alloy Steel and clearance under the exemption. During the preliminary hearing, the Court declined to rule on the duty rate issue but questioned the rejection of the Petitioners' offer to pay duty under protest. Respondent No. 3's failure to attend court led to the Court's criticism and subsequent explanation in an affidavit. The Court emphasized the importance of judicial compliance and accepted the apology while warning against future lapses. The Court found the rejection of the duty payment offer unreasonable, given the pending adjudication on the duty rate. It deemed the action arbitrary and directed Respondents to allow clearance upon payment of the duty within ten days. The exemption claim was to be decided in the adjudication proceedings without prejudice due to the duty payment under protest. Consequently, the Court allowed the Writ Petition, directing clearance of goods on payment of duty, waived warehousing charges and interest, and instructed Respondents to cover the Petitioners' legal costs. The judgment highlighted the need for departmental authorities to address such matters promptly to reduce the influx of similar Writ Petitions. In conclusion, the Court's ruling favored the Writ Petitioners, emphasizing fair treatment in duty assessment and compliance with judicial orders. The judgment aimed to resolve the classification dispute through proper adjudication while ensuring the Petitioners' rights were protected during the process.
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