Patanjali Foods Limited Vs Union of India & Ors. (Supreme Court of India)
Supreme Court held that arbitrary encashment of the bank guarantees cannot be treated as payment of duty or duty paid by a claimant. Thus, the doctrine of unjust enrichment or Section 27 of the Customs Act would not be applicable. Accordingly directed to refund amount covered by bank guarantee.
Facts- The assessee imported certain quantity of crude degummed soyabean oil of edible grade in bulk at Jamnagar and filed bill of entry on 02.09.2002 seeking clearance of the imported goods for home consumption. Customs department (department) did not clear the goods on the ground that appellant was required to pay higher customs duty on the basis of tariff value fixed for the imported goods in terms of Section 14(2) of the Customs Act, 1962. Contention of the appellant was that at the time of the import of the goods the concerned notification issued by Government of India fixing tariff value u/s. 14(2) of the Customs Act had not come into effect. Therefore, appellant was liable to pay duty only in terms of the provisions contained in Section 14(1) of the Customs Act.
High Court passed an order dated 07.10.2002 admitting the writ petition and granted interim relief to the effect that for clearance of the goods in question, appellant should furnish a bank guarantee for the difference of duty of customs under Sections 14(1) and 14(2) of the Customs Act, clarifying that this arrangement would be subject to order of final assessment.
