{"id":78850,"date":"2011-05-06T00:00:00","date_gmt":"2011-05-05T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/essar-vs-union-on-6-may-2011"},"modified":"2018-08-24T22:31:41","modified_gmt":"2018-08-24T17:01:41","slug":"essar-vs-union-on-6-may-2011","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/essar-vs-union-on-6-may-2011","title":{"rendered":"Essar vs Union on 6 May, 2011"},"content":{"rendered":"<div class=\"docsource_main\">Gujarat High Court<\/div>\n<div class=\"doc_title\">Essar vs Union on 6 May, 2011<\/div>\n<div class=\"doc_author\">Author: R.M.Doshit,&amp;Nbsp;Honourable Mr.Justice K.M.Thaker,&amp;Nbsp;<\/div>\n<pre>   Gujarat High Court Case Information System \n\n  \n  \n    \n\n \n \n    \t      \n         \n\t    \n\t\t   Print\n\t\t\t\t          \n\n  \n\n\n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t\n\n\n \n\n\n\t \n\nSCA\/17486\/2006\t 5\/ 5\tORDER \n \n \n\n\t\n\n \n\nIN\nTHE HIGH COURT OF GUJARAT AT AHMEDABAD\n \n\n \n\n\n \n\nSPECIAL\nCIVIL APPLICATION No. 17486 of 2006\n \n\n \n \n=====================================================\n \n\nESSAR\nSTEEL LTD. &amp; 1 - Petitioner(s)\n \n\nVersus\n \n\nUNION\nOF INDIA THR' SECRETARY &amp; 3 - Respondent(s)\n \n\n=====================================================\n \nAppearance : \nMR\nKS NANAVATI, SR.ADVOCATE for NANAVATI ASSOCIATES for Petitioners \nMR\nHARIN P RAVAL, ADDITIONAL SOLICITOR GENERAL OF INDIA for\nRespondent(s) : 1 -\n4. \n=====================================================\n \n\t  \n\t \n\t  \n\t\t \n\t\t\t \n\nCORAM\n\t\t\t: \n\t\t\t\n\t\t\n\t\t \n\t\t\t \n\nHONOURABLE\n\t\t\tMS. JUSTICE R.M.DOSHIT\n\t\t\n\t\n\t \n\t\t \n\t\t\t \n\n \n\n\t\t\t\n\t\t\n\t\t \n\t\t\t \n\nand\n\t\t\n\t\n\t \n\t\t \n\t\t\t \n\n \n\n\t\t\t\n\t\t\n\t\t \n\t\t\t \n\nHONOURABLE\n\t\t\tMR.JUSTICE K.M.THAKER\n\t\t\n\t\n\n \n\nDate\n: 01\/12\/2008 \n\n \n\nORAL\nORDER<\/pre>\n<p>(Per<br \/>\n: HONOURABLE MS. JUSTICE R.M.DOSHIT)<\/p>\n<p>\tThe<br \/>\npetitioner   Essar Steel Limited has preferred the present petition<br \/>\nunder Article 226 of the Constitution of India against the decision<br \/>\nof the Government of India in not exercising power to grant exemption<br \/>\nconferred by Section 25 of the Customs Act, 1962 (hereinafter<br \/>\nreferred to as,  the Act )<br \/>\nin respect of the capital goods (machinery) imported by the<br \/>\npetitioner in the year 1993.\n<\/p>\n<p>\tIn<br \/>\nthe year 1993 with a view to expanding its manufacturing capacity at<br \/>\nHazira, District Surat, the petitioner had imported certain<br \/>\nmachinery. The petitioner also made request for exemption from the<br \/>\ncustom duty payable on such machinery. As early as on 7th<br \/>\nJune, 1994 the Government of India advised the petitioner to clear<br \/>\nthe imported goods (the machinery) from the Customs in the normal<br \/>\ncourse i.e. by paying custom duty. The petitioner did clear the goods<br \/>\non payment of custom duty. The petitioner, however, went on to make<br \/>\nrepresentations for such exemption which were repeatedly rejected.<br \/>\nFeeling aggrieved, the petitioner has preferred the present petition<br \/>\nin the year 2006. The reliance is placed on order no.207 dated 2nd<br \/>\nNovember, 1993 made by the Government of India in respect of<br \/>\nM\/s.Maruti Udhyog Limited. Under the aforesaid order dated 2nd<br \/>\nNovember, 1993, M\/s.Maruti Udhyog Limited has been granted exemption<br \/>\nfrom the custom duty in exercise of powers conferred by sub-section<br \/>\n(2) read with sub-section (3) of Section 25 of the Act on conditions<br \/>\nmentioned in the said order.\n<\/p>\n<p>\tMr.Nanavati<br \/>\nhas appeared for the petitioner. He has taken us through the<br \/>\naforesaid order dated 2nd November, 1993 and the public<br \/>\nnotice dated 5th November, 1993 given by the Government of<br \/>\nIndia declaring that,  &#8230;if similar proposals are received<br \/>\ninvolving very large import of capital goods for purposes of<br \/>\ngenerating exports of value added items in an internationally<br \/>\ncompetitive environment, the Finance Ministry will consider extension<br \/>\nof similar facilities to such exports.  Mr.Nanavati<br \/>\nhas assailed the decision of the Government of India. In the<br \/>\nsubmission of Mr.Nanavati, the petitioner has been meted<br \/>\ndiscriminatory treatment. The petitioner having exported finished<br \/>\ngoods worth crores of rupees, the petitioner ought to have been<br \/>\ngranted benefit of exemption from custom duty on the capital goods in<br \/>\nthe same manner as it was granted to M\/s.Maruti Udhyog Limited. He<br \/>\nhas also submitted that as the petitioner had been corresponding with<br \/>\nthe Government of India there was no occasion for the petitioner to<br \/>\napproach this Court prior to 2006.\n<\/p>\n<p>\tThe<br \/>\npetition is contested by the Government of India. Learned advocate<br \/>\nMr.Raval has taken us through the counter affidavit. He has submitted<br \/>\nthat the request made by the petitioner was rejected as early as on<br \/>\n7th June, 1994. The present petition filed as late as in<br \/>\nthe year 2006 needs to be rejected on the grounds of delay, laches<br \/>\nand acquiescence alone. He has also taken us through the averments<br \/>\nmade in the counter affidavit, particularly paragraph 7 onwards, to<br \/>\ndemonstrate that the petitioner was not similarly situated as<br \/>\nM\/s.Maruti Udhyog Limited. The export already made by the petitioner<br \/>\nwas irrelevant in as much as the said export would have been made by<br \/>\nthe petitioner in any case. The grant of exemption to the petitioner<br \/>\nas prayed for would also adversely affect the other similar<br \/>\nindustries in the local market, etc.<\/p>\n<p>\tWe<br \/>\nare unable to agree with Mr.Nanavati. First; the petitioner has no<br \/>\nfundamental or statutory right to claim exemption from the custom<br \/>\nduty. The powers to grant exemption under Section 25 of the Act are<br \/>\ndiscretionary. The Court would not interfere in exercise of or in<br \/>\nrefusal to exercise of such powers. Second; the petition filed more<br \/>\nthan 12 years after the date of the cause of action requires to be<br \/>\nrejected on the grounds of delay, laches and acquiescence. The<br \/>\nexplanation put-forward by Mr.Nanavati that the petitioner was<br \/>\ncorresponding with the Government of India is no excuse for condoning<br \/>\nthe delay and entertaining the petition at this belated stage. Third;<br \/>\nthe Government of India has laid a case that the petitioner is not<br \/>\nsimilarly situated as M\/s.Maruti Udhyog Limited and that the grant of<br \/>\nexemption to the petitioner would adversely affect similar industries<br \/>\nin the country. We are, therefore, of the opinion that the petitioner<br \/>\ncannot be said to have been meted discriminatory treatment compared<br \/>\nto M\/s.Maruti Udhyog Limited. The comparison with M\/s.Maruti Udhyog<br \/>\nLimited is inapposite and is not acceptable.\n<\/p>\n<p>\tFor<br \/>\nthe aforesaid reasons, we dismiss this petition in limine. Notice is<br \/>\ndischarged.<\/p>\n<pre>\n \n\n\n \n\n\n \n\n(K.M.Thaker,\nJ.)\t\t\t\t  (Ms.R.M.Doshit, J.)\n \n\n\n\/moin\n\n\n\n    \n\n \n\t   \n      \n      \n\t    \n\t\t   \u00a0\u00a0\u00a0\n\t   \n      \n\t  \t    \n\t\t   Top\n\t   \n      \n\n\n<\/pre>\n","protected":false},"excerpt":{"rendered":"<p>Gujarat High Court Essar vs Union on 6 May, 2011 Author: R.M.Doshit,&amp;Nbsp;Honourable Mr.Justice K.M.Thaker,&amp;Nbsp; Gujarat High Court Case Information System Print SCA\/17486\/2006 5\/ 5 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD SPECIAL CIVIL APPLICATION No. 17486 of 2006 ===================================================== ESSAR STEEL LTD. &amp; 1 &#8211; Petitioner(s) Versus UNION OF INDIA THR&#8217; SECRETARY &amp; [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[16,8],"tags":[],"class_list":["post-78850","post","type-post","status-publish","format-standard","hentry","category-gujarat-high-court","category-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Essar vs Union on 6 May, 2011 - Free Judgements of Supreme Court &amp; 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