M/S. Annam Steels Pvt. Ltd., v. Assistant Commissioner Of

In the High Court of Judicature at Madras Dated : 25.4.2018 Coram :

The Honourable Mr.Justice T.S.SIVAGNANAM Writ Petition No.10457 of 2018 M/s.Annam Steels Pvt. Ltd., rep. by Director C.Vijay Kumar

...Petitioner

Vs The Assistant Commissioner of Customs (Bonds), office of the Commissioner of Customs, Chennai V, 60, Rajaji Salai, Custom House, Chennai-1.

...Respondent

PETITION under Article 226 of The Constitution of India praying for the issuance of a Writ of Mandamus directing the respondent to pass orders on the petitioner's representation dated 05.10.2017, followed by subsequent communication dated 25.10.2017.

For Petitioner :

Mr.R.N.Amarnah For Respondent :

Mr.Rabu Manohar, SSC

ORDER

Mr.Rabu Manohar, learned Senior Standing Counsel accepts notice for the respondent. Heard both. By consent, the writ petition itself is taken up for final disposal.

2. The subject property was originally owned by one M/s.DDS Steel Rolling Mills Private Limited, which had availed loan from the Indian Overseas Bank. The property owned by the said company was mortgaged in favour of the bank in the year 2008. The bank, being a secured creditor, had a first charge over the subject property.

3. According to the petitioner, the property in question was free from any other attachment or mortgage except the mortgage in favour of the Indian Overseas Bank. On account of the default committed by the said company in repayment of the loan, action was initiated by the secured creditor under the provisions of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 and ultimately, the subject property was brought to auction sale. The petitioner

participated in the public auction and was declared as a successful bidder and a sale certificate was issued on 23.1.2012. Subsequently, a corrigendum was issued since there was no mentioning of the pathway. The petitioner approached the Sub-Registrar, Redhills for registration of the sale certificate along with the corrigendum. However, the petitioner was informed that there was an attachment of the subject property by the Customs Department while attaching the properties owned by one M/s.SDS Steels Private Limited and one M/s.Jai Bhawani Steel Enterprises, having factory in the adjoining lands for non payment of customs duty.

4. The case of the petitioner is that they purchased the subject property in an auction conducted by the secured creditor pursuant to an action initiated under the said Act and that the subject property, which was brought for auction, was owned by the defaulter namely M/s.DDS Steel Rolling Mills Private Limited and not the said M/s.SDS Steels Private Limited and the said M/s.Jai Bhawani Steel Enterprises. Therefore, the petitioner requested the Customs Authorities to lift the attachment and in this regard, a representation was sent on 16.9.2017, followed by reminders dated 05.10.2017 and 25.10.2017. Having not been favoured with any response, the petitioner is before this Court for appropriate directions to the respondent. The fact that the petitioner has made a representation for lifting the attachment is not in dispute, as the Department, by letter dated 16.10.2017, requested for details from the petitioner, which the petitioner has furnished.

5. In the light of the above, the writ petition is disposed of with a direction to the respondent to consider the petitioner's representations dated 05.10.2017 and 25.10.2017 as well as the documents furnished along with the representation dated 25.10.2017, afford an opportunity of personal hearing to the authorized representative of the petitioner and pass orders on merits and in accordance with law, within a period of eight weeks from the date of receipt of a copy of this order. No costs.

Sd/- Assistant Registrar(CS II) //True Copy// Sub Assistant Registrar

RS To The Assistant Commissioner of Customs (Bonds), office of the Commissioner of Customs, Chennai V, 60, Rajaji Salai, Custom House, Chennai-1.

+1cc to Mr.R.N.Amarnath, Advocate Sr.No.31174 +1cc to Mr.B.Rabu Manohar, Advocate SR.No.30606 GMR(CO) sm:11.5.2018 WP.No.10457 of 2018