LAWS(KAR)-2018-3-350

RUCHI SOYA INDUSTRIES LTD Vs. UNION OF INDIA

Decided On March 06, 2018
Ruchi Soya Industries Ltd Appellant
V/S
UNION OF INDIA Respondents

JUDGEMENT

(1.) The petitioner has called in question the legality and correctness of the demands made by the respondents vide Annexures-W, X, Y and Z directing the petitioner to pay higher rate of duty at 12.5% for clearance of the subject goods, interalia seeking for a direction that the said notification No.46/2015-Cus dated 17.09.2015 is not effective and cannot be enforced from 17.09.2015 and the same is not applicable to the goods imported by the petitioner in the facts and circumstances of the case.

(2.) The petitioner is a Public Limited Company duly registered under the Companies Act. It transpires that the petitioner entered into a contract dated 27.07.2015 with its foreign supplier M/s. Aavanti Industries Private Limited, Singapore for import of 10,000 MTs of Crude Palm Oil of Edible Grade in bulk on the terms and conditions as stated in the contract. Accordingly, the vessel carrying the aforesaid imported goods arrived at Mangalore port on 17.09.2015 around 1600 hours. The petitioner had filed four Bills of Entry bearing Nos. 2619662, 2619678, 2619680 and 2619708 dated 16.09.2015 seeking clearance of the subject goods for home consumption. The subject goods merits classification under Chapter Heading 15111000 of the Customs Tariff Act. Further, it is stated that these goods are covered by Entry 51-II (A) of the notification No.12/2012-Cus dated 17.03.2012 and the petitioner was liable to pay the duty at 7.5%. Accordingly, the petitioner filed the aforesaid four Bills of Entry claiming classification and rate of duty at 7.5%. The same was assessed on 16.09.2015 and the petitioner was required to deposit duty of Rs.2,64,95,907/- in terms of the Bills of Entry and TR-6 challans were generated by EDI Service Centre, Mangalore.

(3.) It is also not in dispute that the entry inward was granted to the vessel at 22.45 hours on 17.09.2015. It is the grievance of the petitioner that the Department instead of clearing the aforesaid Bills of Entry, recalled the said Bills of Entry and reassessed the same, behind the back of the petitioner, on the alleged basis that the rate of duty on the subject goods has increased by 5% in terms of notification No.46/2015-Cus dated 17.09.2015 and the duty payable is at 12.5% and the petitioner was asked to deposit the duty at the enhanced rate in terms of the Bills of Entry and TR-6 challans generated by EDI Service Centre, Mangalore on 18.09.2015. Aggrieved by the said enhanced demands made by the respondents on 18.09.2015, the petitioner is before this Court.