Date:05/08/2005 URL: http://www.thehindubusinessline.com/2005/08/05/stories/2005080502900900.htm

Back HC restrains Customs from taking action against Ruia Cotex

Our Legal Correspondent

Kolkata , Aug 4

MR Justice Pronab Kumar Chattopadhay of the Calcutta High Court has directed the Customs authorities not to take any coercive measure regarding Ruia Cotex Ltd (RCL) and its Director, Mr Pawan Kumar Ruia.

The petitioners had asked for orders from the Court restraining the Customs authorities from proceeding in any manner against the company in connection with supplies made by the petitioner to Hazel Traders Pvt Ltd and Preetam Marketing Pvt Ltd, and the claim of duty drawback under the Foreign Trade (Development and Regulation) Act, and from proceeding with the case by treating a domestic transaction as an act of smuggling under the Customs Act, or under the Conservation of Foreign Exchange and Prevention of Smuggling Activities (Cofepasa) Act.

The petitioner has prayed for quashing of the proceeding.

It was stated that the petitioner carried on the business of manufacturing and selling of fabrics and garments and that company had no import or export under the Customs Act.

For 2002-03, the petitioners sold certain goods to Hazel Traders and Pritam Marketing and duty drawback was received up to the extent of allowable of indoor traders.

The Customs issued a summons under Section 108 of the Act despite the fact that the petitioners were not export-oriented.

The matter will be heard after four weeks.

In the meantime, the parties have been directed to file their respective affidavits.