TMI Blog2016 (8) TMI 396X X X X Extracts X X X X X X X X Extracts X X X X ..... allowed, even if the permitted period for bonding has expired and demand notice has been issued or it has been decided to put the goods under auction. However, while doing so, it is necessary to extend the period of warehousing under Section 61 of the Customs Act, to enable the importer to export the goods within the permitted period of warehousing. Appellant is permitted to make a representation to the respondents seeking permission to re-export the goods lying in the balance containers – time limit for clearance granted is one year – appeal allowed – decided in favor of appellant. - Writ Appeal No.723 of 2015, MP.No.1 of 2015 - - - Dated:- 27-7-2016 - Huluvadi G. Ramesh And M. V. Muralidaran, JJ. For the Appellant : Mr. Vijay Na ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Appellant Company took strenuous efforts to re-export the imported goods. 2.3 On the basis of the Circular dated 14.01.2003 in F.No.473/25/2002-LC of Government of India, Ministry of Finance and Company Affairs, Department of Revenue, the respondents granted permission to re-export the imported goods. Accordingly, out of 200 containers, 139 containers were re-exported in the year 2005. Thereafter, by order dated 28.05.2007, the warehouse license was extended upto 24.03.2008. 2.4 While so, the second respondent issued a notice dated 25.03.2008 under Section 72(1) of the Customs Act, demanding payment of duty and interest on the warehoused goods. On the failure of the appellant Company to discharge the demanded amount, notice under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ade strenuous efforts to re-export the imported goods and out of 200 containers, 139 containers were re-exported in the year 2005 itself and thereafter, they have taken vigorous steps to re-export the goods lying in the balance containers and the same could not be achieved due to lack of permission from the respondents, despite having prospective buyers. Learned senior counsel further submits that the Circular dated 14.01.2003 issued by the Government of India squarely applies to the case of the Appellant and entitles the Appellant to re-export the goods imported. Learned senior counsel also submits that the highest bidder for e-auction held on 23.12.2011 did not fulfill the terms and the sale proceedings were subsequently cancelled by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eries along with auxiliary equipments consisting of 200 containers in the year 1996. Due to severe financial crisis, they have bonded the said containers in Customs Bonded Warehouse. However, they have taken strenuous steps to clear the imported goods. In the mean while, they have initiated proceedings before the BIFR seeking to declare it as a Sick Company. Pending the same, on the basis of the Circular dated 14.01.2003, issued by the Government of India, Ministry of Finance and Company Affairs, Department of Revenue, the respondents granted permission to re-export the imported goods. Accordingly, out of 200 containers, 139 containers were re-exported by the Appellant and the remaining containers could not be re-exported for want of buyers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g warehoused goods, in order to stabilize their financial position, whereas, the respondents have not duly considered the same. 9. Insofar as the second ground is concerned, the Hon'ble Apex Court in the decision relied on by the learned Single Judge, has held that the Circular dated 14-01-2003 would not apply to a situation where the goods had already been put to auction, whereas, in the present case, e-auction was conducted on 23.12.2011 with respect to the goods in question and one Sri Shiva Impex was declared as a highest bidder. However, the same was cancelled due to non-payment of post bid EMD/Security Deposit. Thereafter, the first respondent appears to have called for a fresh e-auction on 17.02.2012, which compelled the said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y be allowed, even if the permitted period for bonding has expired and demand notice has been issued or it has been decided to put the goods under auction. However, while doing so, it is necessary to extend the period of warehousing under Section 61 of the Customs Act, to enable the importer to export the goods within the permitted period of warehousing. 11. For the discussions held in the foregoing paragraphs, we are of the view that the order impugned herein is liable to be set aside and to meet the ends of justice, an opportunity be given to the Appellant to re-export the goods in question, so as to reduce the burden cast on them. 12. Accordingly, the Writ Appeal is allowed by setting aside the order passed by the learned Single Ju ..... X X X X Extracts X X X X X X X X Extracts X X X X
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