M.L. Pendse JUDGMENT
M.L. Pendse, J.
1. The petitioners imported 78.255 Metric Tonnes of Silicon coated Low Carbon Electrical Steel Sheet Cuttings and the consignment arrived in Bombay on May 23, 1984. The petitioners filed Bill of Entry for home consumption on May 19, 1984. The goods were tested and the test report indicates that the consignment is of carbon defective cuttings. The Customs authorities declined to clear the goods and served query memo calling upon the petitioners to explain as to how the import was permissible under the licences held by the petitioners. The action on the part of the respondents gave rise to the filing of this petition under Article 226 of the Constitution of India on June 11, 1984.
2. The learned Single Judge by order dated June 15, 1984 permitted the petitioners to clear the consignment on certain terms. The order of the learned Judge specially provides that the respondents are at liberty to serve show cause notice and pass appropriate adjudication order. It is not in dispute that in spite of specific order, the respondents have failed to take any follow up of action in pursuance of the query memo. It is, therefore, obvious that the objection raised by the respondents for clearance was possibly not justifiable. Shri Bulchandani, learned counsel appearing on behalf of the Department, submitted that the copy of the licence is not annexed to the Writ Petition by the petitioners and it is not possible to ascertain whether the imported consignment was permissible under the licences. The learned counsel urged that the Department should be permitted to pass adjudication order after service of show cause notice. We are not inclined to accede to the request of the learned counsel as there is no explanation why for last over 10 years the Department did not bother to serve show cause notice and pass order of adjudication. The failure on the part of the Department is in spite of specific order passed by this Court. In these circumstances, no fruitful purpose would be served by permitting the respondents to commence adjudication proceedings hereafter. As the goods are already cleared by an interim order, no order is required to be passed on the Petition save and except to direct that the Bank guarantee furnished shall stand discharged.
3. Accordingly, Petition succeeds and rule is made absolute in terms of prayer (a) and the Bank guarantee furnished by the petitioners to stand discharged. In the circumstances of the case, there will be no order as to costs.
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