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TMI Blog2014 (6) TMI 715X X X X Extracts X X X X X X X X Extracts X X X X ..... - Now that the Bank Guarantees had been released and to the said extent Mr. Bharadwaj conceded, we need not dilate on the issue. Jurisdiction of Civil Court - Held that:- Payment of duty under the Customs Act is determined through a complete procedure prescribed in law. The Civil Court, in our view, would not be competent to hold, no duty was payable. If we closely examine the letter dated March 14, 2013, we would not find any definite assertion, no customs duty was payable. The letter might have a dominant role in the matter of adjudication of the customs duty, it might be otherwise. Observation of the Civil Court would rather foreclose the right of the customs authorities to deal with the issue in accordance with law. In accordanc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e in a position to collect the duty through invocation of Bank Guarantees. The entire scheme was being monitored by Director General of Foreign Trade (D.G.F.T.). The import was effected in 2009 followed by three Bank Guarantees amounting to Rs. 3,01,10,808.00; 43,80,906.00 and 18.94,00,000.00. H.B.T. claimed, they performed their obligation under the Foreign Policy and as such was entitled to return of the Bank Guarantees. As per conditions of the contract they duly submitted a clearance certificate from the Director General of Foreign Trade (D.G.F.T.) appearing at page 169 wherein the Director General of Foreign Trade (D.G.F.T.) gave their consent, rather recommended for return of the Bank Guarantees. At that juncture, Customs Authority de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st the plaintiff. His Lordship directed discharge of the guarantees. The Customs Authority subsequently discharged the guarantees and preferred this belated appeal that we heard on the above mentioned dates. Contentions 2. Mr. R. Bharadwaj learned Counsel appearing for the appellant would contend, the letter of the Director General referred to above, would not ipso facto preclude the Customs Authority to proceed against H.B.T. in adjudicating their actual liability towards Customs. He would refer to Sections 17, 47, 110, 110 A and 124 of the Customs Act to contend, the said Act would have a complete procedure as to adjudication of the Customs liability. Unless and until the authority would proceed in accordance with law and pass a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in another proceeding. Hence, there was no violation on the part of the H.B.T. 4. To support his contention Mr. Mitra would rely upon two decisions: 1. Hy-Grade Pellets Ltd. v. Commissioner of Custom 2004 (171) ELT 177 (Trib. - Delhi) 2. Bhilwara Spinners Ltd. v. Union of India 2011 (267) ELT 49 (Bom.) 5. While giving reply, Mr. Bharadwaj contended, the Customs Authority is duty to bound to proceed in accordance with law and complete procedure was prescribed under the Customs Act. The civil Court could not have any jurisdiction in this regard to transgress upon such arena. Distinguishing the cases cited at the bar Mr. Bharadwaj would contend, the orders impugned in those two cases were passed in an appropriate p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t was satisfied with regard to discharge of the export obligation stipulated in the licence that might be one of the support documents to get the Bank Guarantees discharged. If we look to page 170, we would find, H.B.T., by letter dated March 18, 2013 asked for return of the guarantees on the strength of the certificate of Foreign Trade referred to herein before. They also submitted relevant documents required there for. The Customs Authority, however, wanted furthermore details that according to H.B.T., were duly supplied through letter dated May 9, 2013. Now that the Bank Guarantees had been released and to the said extent Mr. Bharadwaj conceded, we need not dilate on the issue. We would only examine as to whether the learned Judge, sitti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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