A KUMAR Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioner, the sole proprietor A. Kumar of the Indian Steel Corporation., 19 Sombudoss Street, Madras, purchased 17 licences issued to various parties for the import of "All seconds/second grade/defectives/ cuttings/circles of all grade of alloy/steel (including stainless/heat resisting steels/high speed steels) to any specification/ analysis in coated/juncoated condition in any form section/size/category." He negotiated the supply with Sammisa & Co.. of Korea. The sale contract was confirmed on 22-1-1982. He opened letters of credit in favour of the supplier for the total value of US $ 200100, on 5-2-82 with the Laxmi Vilas Bank Ltd., Madras. The supplier prepared invoices on 15-2-1982. The Bill of Lading was prepared and 249.400 M. T. of stainless steel circles defective were shipped on 26-2-1982. The goods arrived at the Madras Port on 27-4-1982, The Bill of Entry was given on 11-5-1982 to the Collector of Customs for assessment of Duty. It is alleged that at the time the order was placed with the foreign firm or entered the territorial waters, according to the Customs Tariff Act, 1975 the duty chargeable for coils for re-rolling, bars (including bright bars), rods, wire rods, strips, sheets and plates of stainless steel was 300 per cent, while in respect of other forms of alloy steel, the duty was 45 per cent.

(2.) On 15-4-1982 the Customs Tariff (Amendment) Bill, 1982 was introduced in the Lok Sabha by which the said rates of duty were levelled to 300 per cent for all types of alloy steel and high carbon steel w.e.f. 15-4-1982 but in case of circles, angles, shapes and sections of stainless steel, the duty for the period from 1-1-1981 to 15-4-1982 was reduced to 220 per cent ad valorem plus 10 per cent auxiliary duty, vide Clause 3 of the Bill. The Bill also contained a declaration under the Provisional Collection of Taxes Act, 1931 according to which the tax was leviable with effect from 16-4-1982. The Government of India issued a notification on 16-4-1982 and flashed messages to give effect to these provisions. The Bill was passed and came into force with effect from 11-5-1982.

(3.) The petitioner refused to pay the duty at the rate of 23 per cent and contended that the duty payable by him was only 45 per cent and that too on the value of the goods shown in the invoices excluding the lading charges. But the Customs authorities did not agree to these contentions and refused to clear the goods. Thereupon, the petitioner filed this writ petition on 14-6-1982 during the vacation praying that : (1) the Customs Tariff (Amendment) Bill No. 50 of 1982 and the Customs Tariff (Amendment) Act No. 40 of 1982 and the notification dated 16-4-1982, and the Provincial Collection of Taxes Act, 1931 and the Forms of Bill of Entry which included the lading charges in assessable value be declared as ultra vires and unconstitutional and violative of Article 19(1 )(g) (6), 265 and 300A; (2) directions be issued to the respondents to release the goods on payment of duty equal to 45 per cent of invoices value; and (3) direction to issue detention certificate by the respondents to the Madras Port Trust Authorities for clearance of the goods without any charges of demurrage.