J K SYNTHETICS LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) Background facts Petitioner No.1 J.K.Synthetics Ltd. and its shareholder Petitioner No.2 jointly filed this writ petition on 19.7.1982 seeking a large number of reliefs concerning the levy of customs duty and countervailing duty (CVD) on Caprolactum and Diemethyl Terephthalate (DMT) imported by Petitioner for the manufacture of polyester filament yarn and polyester fibre. In the twenty years during which this writ petition has been pending some of the issues raised have ceased to survive for consideration. The petitioners have restricted their pleas to three issues which will be referred to shortly.

(2.) By Notification No. 102 Cus dated 1.7.1977 the Central Government, in exercise of its powers under Section 25 of the Customs Act, 1962 ("Act"), exempted DMT when imported into India from customs duty in excess of 100% ad valorem. In effect, the rate of customs duty payable on imported DMT was 100%. As regards caprolactum, Notification No.86 Cus dated 23.4.1980 exempted the said goods from payment of custom duty in excess of 25% ad valorem. Thus the basic customs duty on caprolactum, when imported, was 25% ad valorem.

(3.) Notification No. 86 Cus dated 23.4.1980 was amended by a Notification No. 164 Cus dated 5.6.1982, whereby the rate of basic customs duty on imported caprolactum was increased from 25% to 55% ad valorem. Further para 2 was inserted in the said notification to the effect that: "This notification shall be in force upto and inclusive of the 31st day of May 1983."