Revenue Fiat Runs unabated in SC - Alert Mangalore Customs wins pre-deposit
SHREE Renuka Sugars Ltd, the appellants had filed before the Supreme Court, an ex-parte Stay application along with Civil Appeal No.7283 of 2012 against the operation of Final Order No 266-273/2012 dated 26.04.2012 (2012-TIOL-1542-CESTAT-BANG) of the CESTAT, Bangalore, in terms of which, the appellant were liable to pay duty of Rs.14.41crore with applicable interest and equal penalty under section 114A of the Customs Act, 1962.
The preliminary hearing in the matter was initially posted for 19.10.2012. The vigilant legal section of the Mangalore Customs, keeping an eye on the status of its Supreme Court cases, spotted this party's ex-parte stay application cited in the advance list and initiated immediate action to oppose the same. The Commissioner immediately rushed one of his Assistant Commissioners,Krishna Kumar Prasad, to New Delhi on 16.10.2012 and with the support of the Directorate of Legal Affairs, ensured that a caveat was filed on 17.10.2012 so that the case of the department would be heard in the matter by the Court. They managed to get the Solicitor General to represent the Department. However, the hearing was adjourned for two weeks on the request of the appellants and was posted for next hearing on 09.11.2012.
On coming to know that the Solicitor General would not be available on 09.11.2012, the Assistant Commissioner again visited New Delhi and ensured that a senior counsel is nominated to argue for the department. The case was also briefed in detail to the counsels. The stay application was strongly opposed, as a result of which the Court ordered deposit of entire duty liability and 50% of penalty within six weeks that is by 21.12.2012. The Supreme Court Order reads as:
There shall be interim stay of the impugned order, subject to the appellant depositing the entire duty liability and also 50% of the penalty demanded within a period of six weeks' from today. If such deposit is not made within the stipulated time, the interim order, granted by this Court, shall stand vacated without reference to this Court.
Call the matter after six weeks
Delhi is very far off for a remote place like Mangalore, but apparently the Customs officers there are a dedicated lot and they could manage to realize over 21 Crores of rupees at the Stay stage.
DDT had carried a similar story on how the Bangalore Customs salvaged more than 200 Crores in the Bharti Airtel case.