ALUMINIUM INDUSTRIES LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) THE controversy is about levy of customs duty on aluminium ingots imported by the petitioner-company.

(2.) DUTIES are leviable under three heads: (i) Basic duty under S. 2 of the Customs Tariff Act, 1975; (ii) Auxiliary duty of customs under the Finance Act; and (iii) Additional duty of customs under S. 3 of the Customs Tariff Act, 1975. By a notification issued on 9-9-198 0 , in exercise of power under S. 25 (1) of the customs Act, 1962 Government had exempted aluminium ingots from the whole of the basic duty. Another notification had also been issued on the same day, amending an earlier notification of March, 1980, exempting aluminium ingots from auxiliary duty. As regards additional duty, the rate was 40 per cent prior to 29-8-198 0 ; but on that day, notification No 176 was issued, also in exercise of power under S. 25 (1), exempting additional duty in excess of 121/2 per cent.

(3.) THE petitioner-company had placed the order for import on 11-5-1981. THE vessel carrying the cargo entered the territorial waters of india, near the Cochin Port, on 25-3-1981. It was berthed inside the Cochin harbour on 26-3-1981. Bill of entry was filed on 28-3-1981. According to the petitioner, the import was complete when the cargo reached the territorial waters of India i. e. before 27-3-81, and the assessment of duty should have been at the rate then in force. THE Department's case is that the relevant date is the date of filing the Bill of Entry i. e. 28-3-1981, and the revised rates in force from 27-3-1981 were applicable. As the rival contentions turn on the provisions of the Customs Act, 1962 it will be useful to examine some of them, in so far as they relate to imports.