9911796707
TMI Blog2006 (2) TMI 185X X X X Extracts X X X X X X X X Extracts X X X X ..... of the petitioner was kept in the private licensed bonded warehouse. Some of the machinery was cleared on payment of Customs duty and interest payable thereon, but the remaining machinery was not removed from the bonded warehouse till June, 2001. After moving out the machinery from the bonded warehouse, the petitioner made an application to the Board for waiver of interest amounting to Rs. 4.11 crores. The same was rejected on the ground that there was no special reason to waive the interest. 3.The petitioner challenged the decision of the Board in Writ Petition No. 5635 of 2004. By an order dated August 23, 2004, the Division Bench of this Court allowed the Writ Petition and directed the Board to reconsider the application of the petiti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mand of interest was created because the petitioner did not pay the balance amount of special additional duty. It has been further averred that interest can be waived only under exceptional circumstances and on re-examination of the …… "Section 61(2) read with proviso, makes it clear that the authorities have to pass a reasoned order while accepting or rejecting the application moved for waiver. Besides, we are told that respondents 4 and 5 had twice recommended the case of the petitioner to the Board for waiver in the special circumstances mentioned by him. Since, the respondent-Board is required to discharge a quasi-judicial function, the least expected of such an authority is to give reasons for the conclusions it arrives at and for it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eral. 8.Section 61(2) of the Act together with its provisos, which have bearing on the decision of the writ petition reads as under: "(2) Where any warehoused goods- (i) specified in [sub-clause (a) or sub-clause (aa)] or sub-section (1), remain in a warehouse beyond the period specified on that sub-section by reason of extension of the aforesaid period or otherwise, interest at such rate as is specified in Section 47 shall be payable, on the amount of duty payable at the time of clearance of the goods in accordance with the provisions of Section 15 on the warehoused goods, for the period from the expiry of the said warehousing period till the date of payment of duty on the warehoused goods; (ii) specified in sub-clau ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 47, as may be fixed by the Board. First proviso to Section 61(2) empowers the Board to waive the whole or part of interest payable under that section in respect of any warehoused goods. The exercise of this power hedged with the condition that the Board must feel satisfied about the existence of the circumstances of exceptional nature and also that it will be in public interest to waive the interest. Then and then only the Board can waive the interest or any part thereof. 10.The learned Assistant Solicitor General argued that reasons are required to be recorded only if the Board decides to waive the interest and not otherwise and, therefore, the absence of reasons should not be made a ground to nullify the decision, which was conveyed t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her or not it would be in public interest to waive the interest by taking into consideration the special circumstances, if any brought forward by the petitioner. The use of the expression "the reasons/grounds advanced by the petitioner are not found to be of exceptional nature and are not in public interest deserving favourable consideration of waiver of interest under Section 61 of the Act" in the impugned decision of the Board, is clearly indicative of the non-application of mind by the functionaries of the Board. Therefore, the same is liable to be quashed on the ground that it is not in consonance with the direction given by the Court on August 23, 2004 and the rules of natural justice. 12.In the result, Writ petition is allowed. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
