NARAINDAS BROTHERS Vs. UNION OF INDIA

JUDGEMENT

(1.) UNDER the Customs Tariff Act, 1975 the petitioner was required to pay the customs duty on the importation of PBSY cotton seed oil at the rate of 60 per cent ad valorem and the additional duty. UNDER Section 25 of the Customs Tariff Act, the Central Government has been given power to grant exemption from payment of duty if it is satisfied that it is necessary in the public interest so to do. In exercise of this power, the Central Government issued two notifications dated 1/04/1980 and 24/10/1980 granting total exemption from payment of custom duty and additional duty on edible oils imported into India by the National Dairy Development Board (for short "NDDB)'. The petitioner has sought to challenge the aforesaid orders on the ground that granting of exemption to NDDB and not to the petitioner would be discriminatory and also violative of Article 19(1 )(g) of the Constitution of India inasmuch as the commodity imported by the petitioner would be at a higher price than that of the NDDB which is not leviable to pay any such duty. "The issue . involved in this case has already been decided 'by the Division Bench of this court in case of M. Jehangir Jhhatusha Vs. Union of India, being CWP No.1517/79 decided on 14th November, 1979. ThThe court in this case did not find favour with the contentions of the petitioners on both counts and held that neither grant of exemption in favour of public undertaking(STC) in that case was discriminatory nor was there any violation of Article 19(1) (g) of the Constitution of India. Relying upon the decision of the Supreme Court in the case of Shree Meenakshi Mills Ltd. Vs. Union of India reported in AIR 1974 SC 366, the court held that a price control measure adopted by the Government cannot be deemed to be an unreasonable restriction on the rights of the petitioners guaranteed by Article 19(1)(g) of the Constitution only because it either reduces the profit margin of the petitioners or even results in some loss to the petitioners. The arguments of discrimination was repelled in the following words :

(2.) IN the result this writ petition is dismissed. The petitioner is liable to pay the balance custom duty on the goods imported by it. There shall be no order as to costs.