The Madras High Court has declined to direct the authorities to permit Binny, declared as a sick unit, to re-export some textile machinery which has been lying in the warehouse for 15 years. The court was of the view that the company had no intention to clear the goods, but had been attempting to stall the disposal of the un-cleared time-expired goods.

The court passed the order on a petition by the company for quashing the proceedings of the Superintendent of Customs of January 2012 and to direct the agency to grant permission to re-export the machinery. The company had imported the machinery with auxiliary equipment and spares from Germany in 1996. Due to financial crunch, it could not clear the goods. It was kept in the customs warehouse without payment of duty . Meanwhile, the company was declared sick.

Even after several years, the goods were not cleared and a notice was issued demanding customs duty with interest, followed by detention notice. The company did not pay the duty. The machinery was sold through auction for Rs.2.26 crores, but it was cancelled as the bidder had not fulfilled the terms.

Dismissing the plea, the court said the company had been seeking extension of warehousing period from time to time by citing reasons that it had been declared sick but that there was no genuineness in its attempt in clearing the goods. Repeated requests for extending the warehousing period without sufficient reasons, it said, would only establish that the company had been dragging on the proceedings to frustrate the authorities’ attempt in recovering the duty.