Dismissed

M/S. Itma Hotels India Private Limited., v. the Additionalcommissioner of Customs

Kerala HC10 Nov 2023WP(C)/3124/2023

Case brief

AI extract

What is this about?

The High Court of Kerala dismissed a writ petition challenging the Customs Department's notice to invoke a bank guarantee regarding EPCG scheme violations. The court held no grounds of fraud or irretrievable injury existed and dismissed the petition while directing expeditious adjudication.

What did the court decide?

Writ petition dismissed; Respondent-1 directed to proceed with adjudication of show cause notices expeditiously.

M/S. Itma Hotels India Private Limited., Vs the… — Customs and Excise | Kerala HC (2023)

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IN THE HIGH COURT OF KERALA AT ERNAKULAM

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PRESENT

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THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH

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FRIDAY, THE 10TH DAY OF NOVEMBER 2023 / 19TH KARTHIKA, 1945
WP(C) NO. 3124 OF 2023

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PETITIONER:

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M/S. ITMA HOTELS INDIA PRIVATE LIMITED.,
ITMA HOTELS, PONNURUNNI NORTH, VYTILLA P.O, KOCHI,
KERALA., REPRESENTED BY THE RESOLUTION PROFESSIONAL
SHRI. KIZHAKKEKARAKURIAKOSE JOSE, PIN - 682019
BY ADVS.

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M.BALAGOPAL
R.DEVIKA (ALAPPUZHA)
R.SREEJITH

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RESPONDENTS:

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1 THE ADDITIONAL COMMISSIONER OF CUSTOMS, CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS, OFFICE OF THE COMMISSIONER OF CUSTOMS, CUSTOM HOUSE, WILLINGTON ISLAND, COCHIN, PIN - 682009

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2THE DEPUTY/ASSISTANT COMMISSIONER OF CUSTOMS,
CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS, OFFICE OF
THE COMMISSIONER OF CUSTOMS, CUSTOM HOUSE, WILLINGTON
ISLAND, COCHIN, PIN - 682009
3STATE BANK OF INDIA,
STRESSED ASSETS MANAGEMENT BRANCH (SAMB),1112, RAJA
PLAZA, AVINASHI ROAD, COIMBATORE, REPRESENTED BY ITS
ASSISTANT GENERAL MANAGER, PIN - 641037
4STATE BANK OF INDIA,
M.G. ROAD BRANCH, M.G. ROAD, ERNAKULAM, REPRESENTED BY
ITS BRANCH MANAGER, PIN - 682016
BY ADVS.
M.S.AMAL DHARSAN
P.V.VINOD (BENGALAM)
D.REETHA
C.ANCHALA
M/S.INDIALAW

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
10.11.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C) No.3124 of 2023

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JUDGMENT

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Dated this the 10^th day of November, 2023

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The present writ petition has been filed under Article 226 of Constitution of India impugning the notice dated 11.01.2023 issued by the Customs Department to the Manager, State Bank of India, M.G Road, Ernakulam, for invoking the bank guarantee furnished by the petitioner under EPCG Scheme for importing of capital goods for the hotels. According to the Department, the petitioner did not fulfill the conditions of Export Promotion of Capital Goods Scheme of the Government and they had imported the capital goods in violation of the said scheme. In view thereof it was said that the petitioner was liable to pay a due demand of Rs.4,14,72,500/- by way of Demand Draft drawn in favour of the Commissioner of Customs, Cochin for which the petitioner had furnished bank guarantee of .Rs.4,14,72,500/-.

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2 . This Court can interfere against invocation of bank guarantee only on two ground i.e, fraud or irretrievable injury or loss to the person who has furnished

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WP(C) No.3124 of 2023

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bank guarantee. None of the grounds are available in the present writ petition against the notice invoking the bank guarantee furnished by the petitioner under the EPCG Scheme. The total customs duty demand is Rs.9,31,44,529/which would include the duty and the interest. The bank guarantee is only to an extent of Rs.4,14,72,500/-.

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3 . Considering the scope for interference in respect of invocation of the bank guarantee, and I find no ground available in the present writ petition. The writ petition is not maintainable and therefore, the writ petition is dismissed. The 1 st respondent should proceed with adjudication of Exts.P1 to P3 show cause notices in accordance with law, expeditiously. New management of the petitioner should be put to notice of hearing by the 1 st respondent.

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With the aforesaid direction, the present writ petition stands dismissed.

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Sd/-

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DINESH KUMAR SINGH

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JUDGE

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WP(C) No.3124 of 2023

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APPENDIX OF WP(C) 3124/2023

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`PETITIONER EXHIBITS` `Exhibit P1`	`TRUE COPY OF THE SHOW CAUSE NOTICE F. NO.` `2000237093/194/11-12 LS CUS. DATED` `27.08.2022 ISSUED TO THE PETITIONER UNDER` `SECTION 124 OF THE CUSTOMS ACT, 1962`
`Exhibit P2`	`TRUE COPY OF THE SHOW CAUSE NOTICE F. NO.` `2000136753/71/11-12 LS CUS. DATED` `30.08.2022 ISSUED TO THE PETITIONER UNDER` `SECTION 28(1) READ WITH SECTION 124 OF THE` `CUSTOMS ACT, 1962.`
`Exhibit P3`	`TRUE COPY OF THE SHOW CAUSE NOTICE F. NO.` `2000297160/44/12-13 LS CUS. DATED` `31.08.2022 ISSUED TO THE PETITIONER UNDER` `SECTION 28(1) READ WITH SECTION 124 OF THE` `CUSTOMS ACT, 1962.`
`Exhibit P4`	`TRUE COPY OF THE ORDER DATED 31.12.2021 IN` `CP(IB)/30/KOB/2021 PASSED BY THE NATIONAL` `COMPANY LAW TRIBUNAL, KOCHI BENCH, KERALA`
`Exhibit P5`	`TRUE COPY OF THE PETITIONER'S LETTER DATED` `14.09.2022 TO THE 2NDRESPONDENT`
`Exhibit P6`	`TRUE COPY OF THE LETTER DATED 06.10.2022` `ISSUED BY THE 2NDRESPONDENT TO THE` `RESOLUTION PROFESSIONAL OF THE PETITIONER`
`Exhibit P7`	`TRUE COPY OF THE LETTER DATED 11.10.2022` `ISSUED TO THE 2ND RESPONDENT BY THE` `RESOLUTION PROFESSIONAL OF THE PETITIONER.`
`Exhibit P8`	`TRUE COPY OF THE LETTER NO.` `EPCG/2000615426/171/13-14 DATED 13.10.2022` `AND THE CLAIM IN SCHEDULE-II, FORM-C DATED` `13.10.2022 SUBMITTED TO THE RESOLUTION` `PROFESSIONAL.`
`Exhibit P9`	`TRUE COPY OF THE LETTER DATED 19.10.2022` `ISSUED BY THE RESOLUTION PROFESSIONAL TO` `THE 2NDRESPONDENT.`
`Exhibit P10`	`TRUE COPY OF THE LETTER DATED 11.01.2023` `ALONG WITH ENCLOSURE ISSUED BY THE` `2NDRESPONDENT TO THE 4THRESPONDENT`

M/S. Itma Hotels India Private Limited., v. the Additionalcommissioner of Customs

Case brief

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M/S. Itma Hotels India Private Limited., v. the Additionalcommissioner of Customs

Case brief

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