DRA Industries Limited v. Deputy Commissioner (CT)
2014-09-01
B.RAJENDRAN
body2014
DigiLaw.ai
Judgment 1. By consent of counsel for both sides, the writ petitions are taken up for final disposal at the admission stage. 2. The petitioner company has come up with the present writ petitions to quash the goods detention notice dated 19.8.2014. 3. The petitioner Company is dealing with Billet Steel business at Chennai and Andhra Pradesh. According to the petitioner company, when they imported goods from South Africa, though they have completed all the customs formalities, the same has been detained by the respondents on the ground that the petitioner has not produced valid transit pass. The second respondent imposed a fine at 5%. The second respondent also directed the petitioner company to pay two times of tax as compounding fees. According to the petitioner company, since they have paid all the duties for the consignment, the demand of 5% fine amount and compounding fee is unsustainable in law. Therefore, the petitioner company is before this Court. 4. The learned counsel for the petitioner company submitted that the petitioner company intends to file revision before the appellate authority against the demand of compounding fees. The learned counsel for the petitioner company further submitted that since the vehicles along with goods are in the custody of the 2nd respondent, the petitioner company is willing to pay one time tax at 5% for release of the said lorries along with goods. 5. The learned Additional Government Pleader appearing for the respondents submitted that since the dealers are outside the state, they are liable to pay the compounding fees apart from the payment of tax. 6. Taking into consideration that the vehicles along with goods have been detained and kept under the custody of the second respondent for more than 15 days and considering the fact that the petitioner is ready and willing to pay the one time tax at 5% and also considering the fact that the petitioner obtained transit pass subsequently, I am inclined to release the lorries with goods. Accordingly, the respondents are directed to release the vehicles bearing Registration Nos. MP O9 HG 4931 and MP 09 HF 9964 detained by them to the petitioner forthwith, on condition that the petitioner pays a sum of Rs.78,993/-for each of the vehicles. Insofar the vehicles bearing Registration Nos.
Accordingly, the respondents are directed to release the vehicles bearing Registration Nos. MP O9 HG 4931 and MP 09 HF 9964 detained by them to the petitioner forthwith, on condition that the petitioner pays a sum of Rs.78,993/-for each of the vehicles. Insofar the vehicles bearing Registration Nos. AP 29 TB 7839 and AP 29 TB 5149 are concerned, the second respondents are directed to release the same on condition that the petitioner pays a sum of Rs.36,001/-(Rupees Thirty six thousand and one only) each. Insofar as the compounding fee is concerned, since the petitioner intends to file revision, the petitioner is directed to produce bank guarantee for a sum of Rs.1,00,000/- (Rupees One lakh only) for each of the vehicles. It is made clear that the petitioner company has to subject themselves to the adjudication proceedings that may be initiated by the respondents. It is also made clear that if the petitioner company fails to comply with any one of the above condition, the order of release of vehicle shall stand automatically cancelled without any reference to the Court. 7. The writ petitions are disposed of accordingly. No costs. Consequently, connected miscellaneous petitions are closed.