M/S.Sameer Mat Industries vs. Principal Secretary TO Govt.

Facts

The petitioner, M/s.Sameer MAT Industries, engaged in the sale of Polypropylene and Coir Mat, filed a writ petition seeking a mandamus directing the respondents to adhere to Circular No.4/2018-Customs dated 24.01.2018, which classified their products under HSN Code 460101, taxable at 5%. The petitioner's grievance was that subordinate officials were claiming the HSN Code to be 3902, attracting an 18% tax rate, leading to the detention of their consignments. The respondents, represented by the Additional Government Pleader, stated that the authorities were following the Board's Circular and argued that the petition lacked specific averments regarding the detention of goods, praying for its dismissal.

Held

The Court held that the petitioner had filed the writ petition based solely on apprehension and sought a blanket order to prevent the detention of consignments. The Court found that such a broad order could complicate tax-related issues. It observed that the petitioner had not established any violation by the respondents, either concerning the Board's Circular or any statutory provision. The Court noted that if the authorities were not following the prescribed statutory procedures, the petitioner could approach the courts. However, in this case, no such violation was demonstrated. Consequently, the writ petition was dismissed. The Court did not expressly leave any issue undecided, but the core issue of whether the respondents were indeed violating the circular or statute was not proven by the petitioner.

Key Issues

1. Whether the Court should issue a writ of mandamus directing the respondents to strictly adhere to Circular No.4/2018-Customs dated 24.01.2018 and not detain the petitioner's consignments classified under Tariff item 460101? The petitioner argued that the Circular clearly classified their goods under HSN Code 460101, attracting a 5% tax rate, and that the detention of consignments by subordinate officials based on a different HSN Code (3902, 18% tax) was contrary to the Board's directive. They sought a direction to prevent such detentions. The respondents argued that the authorities were scrupulously following the Board's Circular dated 24.01.2018. They further contended that the writ petition lacked specific averments regarding the place and details of the alleged detention of the petitioner's goods, and therefore, the petition should be dismissed.