VARSHA EXPORTS Vs. UNION OF INDIA

JUDGEMENT

(1.) RULE in Special Civil Application Nos. 5239 of 2000, 5365 of 2000, 5812 of 2000 and 5903 of 2000. Mr. Asim Pandya waives service of Rule on behalf of the respondents.

(2.) THESE matters are filed against the respondents challenging the legality and validity of the Circular No. 38/2000 -Cus. dated 10th May, 2000 issued by the Government of India.

(3.) PETITIONERS are engaged in reprocessing and manufacturing Plastic Agglomerates/Granules out of plastic scrap. Petitioners are also selling their goods in Domestic Tariff Area (DTA) on payment of duties in terms of EXIM Policy and the provisions of the Central Excise Act, 1944 and the Customs Act, 1962. The goods manufactured in 100% Export Oriented Units (EOUs) or those manufactured in the Export Processing Zone (EPZ) are liable to duties of excise equivalent to the aggregate of duties of customs, which would be leviable under Section 12 of the Customs Act, 1962 or any other law applicable. Petitioners are paying duties in respect of goods sold in Domestic Tariff Area. Petitioners are also paying additional duty, which is known as 'Countervailing Duty' (CVD) under Section 3 of the Customs Tariff Act, 1975, which is equivalent to the excise duty for the time being leviable on a like article, if produced or manufactured in India. Petitioners were exempted, however, by Circular No. 38/2000, the Commissioners of Customs were requested to recover short levy by reviewing the D.T.A. clearance made by plastic processors like the petitioners. It is this Circular Annexure 'A' dated 10th May, 2000, which is the subject matter before the Court.