UNION OF INDIA Vs. VICTORY PLASTIC PRIVATE LIMITED

JUDGEMENT

(1.) Leave granted.

(2.) This appeal is preferred against the judgment of the Bombay High court allowing the writ petition filed by the respondent. The writ petition was directed against the order of the Assistant Collector, Customs rejecting a refund application filed by the respondent.

(3.) The respondent had imported PVC resin which is liable to payment of duty under Tariff Item No. 39. 01/06 of the First Schedule to the Customs Tariff Act, 1975 The central government had, however, issued an exemption notification providing that PVC resin falling under Ch. 39 when imported into India shall be exempt from the whole of the duty of customs leviablethereupon. This notification dated 15/3/1979 stated that it shall remain in operation till 31/3/1981 On 16/10/1980, however, the said notification was modified by another notification limiting the exemption to the duty in excess of forty per cent ad valorem. The respondent, it is not in dispute, opened the letters of credit only on 20/11/1980, i. e. , after the issuance of the notification dated 16/10/1980. The import was much later. Even so, they contended that they should get the benefit of full exemption of duty as provided by the first notification dated 15/3/1979 and that the notification dated 16/10/1980 cannot be applied to him. This contention was rejected by the Assistant Collector but the High court has upheld the same.