2008 (7) TMI 411 - HC - Customs

Levy of customs duty - benefit of the Samadhan Scheme denied - Held that - This Court is of the opinion that when a Scheme grants benefit to an assessee and provides modality for availing such a benefit and the petitioner having submitted the due declaration, the respondents have also granted a Certificate and, only because of the dislocation caused by the Postal Department, they cannot be denied to avail the benefit of the said scheme. Their contention is bona fide. Thus without blaming any parties to the state of affairs, this court, in the interest of justice and overall circumstances of the case, hereby directs the respondents to furnish 2B certificate, which was sent earlier as admitted in paragraph 5 of the counter affidavit, within a period of two weeks from the date of receipt of a copy of this order, on furnishing such a certificate, the petitioner is directed to comply with Section 90(2) of the Finance Act. The writ Petitions are disposed of accordingly.

Summary

Issues:
Prayer for direction to issue Form 2B for Declarations filed against Demand Notices, Customs duty exemption under Notification No. 64/88, Demand Notices for customs duty, Kar vivad Samadhan Scheme declaration, non-receipt of Form 2B certificate.

Analysis:
The petitioner, running a hospital, sought customs duty exemption for imported equipment under Notification No. 64/88. Despite furnishing a bank guarantee, customs duty was proposed, leading to multiple demand notices and writ petitions challenging the demands (Para 2-4). The petitioner also made a declaration under the Kar vivad Samadhan Scheme for tax arrears, seeking benefits (Para 7-8).

The delay in exemption approval led to further writ petitions, and the petitioner's declaration under the Scheme was accepted, but they did not receive the Form 2B certificate (Para 11-12). The Customs Department claimed the certificate was sent but returned undelivered, questioning the petitioner's eligibility for benefits (Para 13). The court directed the postal department to explain the non-delivery of the certificate (Para 14-15).

The court found the petitioner's contention genuine, emphasizing the importance of availing benefits under the Scheme (Para 16-17). Despite the Postal Department's failure to provide evidence, the court, in the interest of justice, directed the respondents to furnish the Form 2B certificate within two weeks, ensuring compliance with the Finance Act (Para 18). The writ petitions were disposed of without costs, closing the connected Miscellaneous Petitions.