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Issues:
Challenge to the constitutional validity of sub-section (2) of Section 61 of the Customs Act, 1962; Legality of orders dated 16-5-1991 and 8-3-1991 under Sections 142, 59, and 72 of the Act. Analysis: Challenge to Constitutional Validity: The petitioner contested the constitutional validity of sub-section (2) of Section 61 of the Customs Act, 1962. The court noted the absence of a proper foundation in the petition for challenging the provision and emphasized the presumption of constitutionality of statutes. The burden of proving constitutional invalidity lies with the party challenging it. The court found that the provision, which imposes interest on warehoused goods retained beyond the permissible time, serves the purpose of expeditious removal to ensure prompt duty payment, benefiting revenue. It held that this provision does not violate Article 265 of the Constitution. Validity of Order dated 16-5-1991: The order under Section 142 of the Act, dated 16-5-1991, concerning four consignments of raw materials faced scrutiny. The petitioner raised objections regarding non-existent items and the tenability of each demand. The court rejected the contention that the entire order was vitiated due to non-existence of some items, stating that if based on objective facts, a decision can stand even if some reasons are invalid. It held that each demand in the order was separate and could be upheld individually, making the order partially valid. Examination of Items in the Order: The court examined the specific items mentioned in the order dated 16-5-1991. It found that demands related to certain consignments had been set aside in appeal, rendering the demands unsustainable. The court ruled that the Assistant Collector could not raise demands for these items. It also analyzed the petitioner's liability for duty on certain quantities of raw materials, concluding that demands related to these items were appealable and subject to separate assessments. Validity of Order dated 8-3-1991: The order dated 8-3-1991, rejecting the petitioner's claim for abandonment of consignment, was assessed. The petitioner's claim for abandonment under Section 23(2) of the Act was rejected by the Assistant Collector. The court noted that the order was appealable, and since an alternative statutory remedy existed, it refrained from delving into the merit of the petitioner's claim. Final Decision: The court partially allowed the writ application, quashing the order related to certain demands while granting the petitioner the liberty to appeal against other demands and the order rejecting the claim for abandonment. The court provided a timeline for filing appeals and instructed a stay of operation of the orders appealed against until disposal of the appeals. No costs were awarded in the matter. This comprehensive analysis covers the constitutional validity challenge, the scrutiny of the impugned order, examination of specific items, and the assessment of the order rejecting the claim for abandonment, culminating in the court's final decision and instructions regarding appeals.
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