AMITAVA LALA, J. - (1.) ACCORDING to the writ petitioner, the goods were imported in this country only for the purpose of exhibition upon furnishing bank guarantee and therefore in accordance with the provisions as laid down in Section 74 of the Customs Act they will be exempted 98% of such duty as provided therein. The Authority concerned cannot prceed on the basis of any marginal note in view of the Single Bench decision of this Court in : 1992(59)ELT522(Cal) (Texmaco Limited v. Union of India). However, I have come to know from the learned Counsel appearing for the Authority that bank has already given an information in respect of encashment of bank guarantee but they will not take any step till the disposal of the stay application.
(2.) THE petitioner contended that immediately after passing of the order an appeal was preferred and a stay application was made by the petitioner and the bank guarantee is valid till July 2000, therefore no order can be passed at this stage in respect of the bank guarantee without hearing the appeal. The respondents contended that imposition of security, if any, is a matter of discretion of the Authority which cannot be avoided. But they cannot take any coercive step for encashment of the bank guarantee till the disposal of the stay application. However, it appears to this Court that controversy is only in respect of hearing of the stay application or hearing both the stay application and the appeal. Therefore, this Court disposes of the writ petition without giving any opportunity for filing affidavits herein by treating the same as Motion Adjourned and directing the Authority concerned to dispose of the appeal and the stay application both within a period of four weeks from the date of communication of this order peremptorily without giving any further opportunity to either of the parties to avoid delay. It is also made clear that till the disposal of the appeal no bank guarantee will be encashed. However, an assurance has already been given by the respondents not to encash such bank guarantee till the disposal of the application.
(3.) WITH the above observations, the writ petition stands disposed of. No order as to costs.;