9911796707
TMI Blog1986 (12) TMI 33X X X X Extracts X X X X X X X X Extracts X X X X ..... inafter referred to as the "Act") and the interest thereon at the rate of 6% per annum upto May 12, 1983 and 12% with effect from May 13, 1983. The facts giving rise to the issuance of the demand notice are required to be stated to appreciate the grievance of the petitioners. 2. The petitioners are a Company registered under the Companies Act, 1956 and manufacture several varieties of textile goods. In the process of manufacture, the petitioners utilise Polyster Filament Yarn as a raw material. Polyster Filament Yarn when partially drawn is a variety known in the trade as "Partially Oriented Yarn", i.e. "POY". POY is a delicate commodity and requires careful handling and storage in controlled conditions of humidity and temperature. Even un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Customs authorities. The Survey Report indicated that the extent of damage to the POY was considerable and the imported goods were not suitable for manufacturing operations. The petitioners, after receipt of the report, addressed letter dated February 28, 1983 to the Assistant Collector of Customs, Bond Department, Bombay, informing that the petitioners do not wish to clear the balance 798 cartons of POY for home consumption and relinquished the title as prescribed under Section 23(2) of the Act. The petitioners pointed out that bill of entry for home consumption of 798 cartons has not been filed and consequently, no order for home consumption has been made by the Officer. The Customs authorities did not immediately act on this letter, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ported goods were losing its efficacy very rapidly and the godown in which they were stored was in a hopelessly deteriorated condition and, therefore, the petitioners took out Notice of Motion No. 922 of 1984 for direction to the respondents to shift the goods to some other godown and then to sell the goods as the petitioners had relinquished their title to the goods. On April 19, 1984, the Motion was made absolute by consent of the parties. The respondents did not take any steps to implement the order and, therefore, the petitioners took out another Notice of Motion being Notice of Motion No. 767 of 1985 on April 9, 1985 for direction to the respondents to carry out the consent order passed in the earlier motion. When the second motion rea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... misconceived. Shri Shringarpure then submitted that the adjournment should be granted as the brief was given to him by the respondents' Advocate only on Friday evening and Saturday and Sunday were not enough to prepare the brief as the Officer of the Department did not show his face. It is impossible, in my judgment, even to seek adjournment on such worthless grounds. Nobody had compelled Shri Shringarpure to accept the brief and nobody had told the respondents' Advocate to give the brief only on Friday evening. It is futile even to suggest that the hearing of the petition should be adjourned till the Officer of the Department finds it convenient to contact his counsel and instruct him to argue the matter. In my judgment, it is high time t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th remission of duty on lost, destroyed or abandoned goods and Section 23(2) reads as under : "The owner of any imported goods may at any time before an order for clearance of the goods for home consumption has been made, relinquish his title to the goods and thereupon he shall not be liable to pay the duty thereon." The plain reading of sub-section (2) of Section 23 of the Act makes it clear that the owner of the imported goods is at liberty to relinquish his title to the goods at any time before an order for clearance of the goods for home consumption is passed and in case of such relinquishment, the owner will not be liable to pay the Customs duty on such imported goods. In respect of warehoused goods, Section 61 prescribes the period ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve not been removed from he warehouse at the expiration of the period fixed then the proper officer may demand the full amount of duty chargeable along with penalty, rent, etc. The impugned notice does not refer to Section 72(1)(b) of the Act specifically but on assumption that the demand is made under that sub-section, it is necessary to examine the legality of the same. Shri Andhyarujina submits, and in my judgment with considerable merit, that the demand is wholly illegal because the petitioners have relinquished the title to the goods in accordance with sub-section (2) of Section 23. It is not in dispute that the licence granted by the Assistant Collector for warehousing imported goods was to remain alive upto March 15, 1983 and before ..... X X X X Extracts X X X X X X X X Extracts X X X X
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