M/S Mahadev Enterprises vs. Commissioner Of Customs & Anr.
Held
The Court disposed of the writ petition by directing the petitioner's authorized representative to appear before Ms Nisha Gupta, Deputy Commissioner, ICD TKD Import, New Delhi, on May 5, 2022, at 11:30 AM. The respondents were directed to issue a notice to MTC, ensuring its representative's presence on the same date and time. The Court also stipulated that if the scheduled date and time were inconvenient for the Deputy Commissioner, she was empowered to fix a fresh date and time proximate to the one provided, with prior notification to the parties. The Court did not make a determination on the merits of the duty payment or the GST implications but facilitated a meeting to resolve the dispute.
Facts
The petitioner, M/s Mahadev Enterprises, filed a writ petition challenging an action by the Commissioner of Customs. The dispute arose concerning the payment of customs duty on certain goods. The respondents, represented by the Commissioner of Customs, stated that duty had been paid by an entity named Mimpex Trading Company (MTC). MTC had informed the respondents that the duty was erroneously paid on behalf of the petitioner. The petitioner, while acknowledging an agreement with MTC for the purchase of goods and the subsequent duty payment by MTC, expressed willingness to refund the duty paid by MTC. The petitioner's motivation was to retain the benefit of GST, which would be lost if the duty was paid offline.
Key Issues
1. Whether the Court should permit an inter se arrangement between the petitioner and MTC regarding the payment of customs duty, considering the petitioner's willingness to refund the duty paid by MTC and the potential loss of GST benefits if the payment is re-processed offline. Petitioner's contention: The petitioner argued that they are willing to refund the duty paid by MTC. They further submitted that if the duty were to be paid offline by the petitioner, they would not receive the benefit of GST. Therefore, they sought to maintain the existing duty payment status on the web portal. Revenue's contention: The respondents, represented by the Commissioner of Customs, stated that they have no objection to an inter se arrangement being arrived at between the petitioner and MTC.
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Cause title — parties, addresses and appearances
O R D E R %
2022
[Physical Court Hearing/Hybrid Hearing (as per request]
Mr Harpreet Singh, who appears on behalf of the respondents, has returned with instructions.
Mr Singh says although duty has been paid, the payer of the duty is an entity going by the name of Mimpex Trading Company [in short ‘MTC’]. Furthermore, Mr Singh says that MTC has conveyed to the respondents that the duty was erroneously paid on behalf of the petitioner.
Mr Pradeep Jain, learned counsel, who appears on behalf of the petitioner, says that although there was an agreement between the petitioner and MTC, which involved the purchase of the subject goods and therefore, duty had been paid by MTC to the respondents, the petitioner is wil
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