C.A. No.-005011-005011 / 2019. CENTURY METAL RECYCLING PVT. LTD. vs UNION OF INDIA. Supreme Court, 17-05-2019

Party Name:C.A. No.-005011-005011 / 2019. CENTURY METAL RECYCLING PVT. LTD. vs UNION OF INDIA. Supreme Court, 17-05-2019
Judgement Date:May 17, 2019
Court:Supreme Court
 
FREE EXCERPT
REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APELLATE JURISDICTION
CIVIL APPEAL NO. 5011 OF 2019
(ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 33602 OF 2017)
CENTURY METAL RECYCLING PVT.
LTD. AND ANOTHER ….. APPELLANT(S)
VERSUS
UNION OF INDIA AND OTHERS ….. RESPONDENT(S)
J U D G M E N T
SANJIV KHANNA, J.
Leave granted.
2. Impugned order dated 12th September, 2017 passed by the Division
Bench of the High Court of Judicature at Allahabad dismisses Writ
Petition Tax No.307 of 2017 filed by the appellants, namely M/s
Century Metal Recycling Pvt. Ltd. and Gauri Shankar Agarwala, inter
alia, on the grounds that the High Court would not exercise
extraordinary jurisdiction under Article 226 of the Constitution of
India as the matter relates to the valuation of imported aluminium
scrap which could be assailed in a statutory appeal and it would not
be appropriate for the writ court to decide whether the appellant had
or had not agreed to valuation by the customs authorities.
Civil Appeal arising out of SLP (C) No. 33602 of 2017 Page 1 of 30
Digitally signed by
CHETAN KUMAR
Date: 2019.05.17
19:38:37 IST
Reason:
Signature Not Verified
3. The appellant Company is stated to be engaged in the manufacture
of aluminium alloys, for which they regularly import aluminium waste
as a raw material for self-consumption. Imported scrap, it is
accepted, falls under different code names as per specifications of
the Institute of Recycling Industry. The grievance raised by the
appellants is that the 2nd respondent i.e. the Principal Commissioner
of Customs, Noida Customs Commissionerate and its Officers
almost uniformly do not clear the consignments as per the declared
transaction value in the bill of entry but insist that the appellants write
a letter agreeing to pay customs duty as per the valuation by the
customs authorities and compel them to forego their right to
provisional assessment under Section 18 of the Customs Act, 1962
(‘the Act’, for short). The appellants, coerced and intimated, have no
option but to give in and issue a letter of consent agreeing to
assessment/valuation by the customs authorities to avoid delay in
clearance, levy of demurrage, ground rent and container detention
charges, etc. It is also alleged that the respondents without
observing and contrary to the mandate of Section 14 of the Act
discard the declared transactional value and recompute the
consignment value in view of the Valuation Alert dated 1st December,
2016 issued by the Central Board of Excise and Customs (‘the
Board’, for short).
Civil Appeal arising out of SLP (C) No. 33602 of 2017 Page 2 of 30

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