MADHAV STOOLS Vs. UNION OF INDIA

JUDGEMENT

(1.) Rule. Mrs. Avani Mehta with Mr. H.M. Mehta appear for respondents. They waive notice of Rule. In these two petitions common questions of law and facts are arising and therefore, with the consent of the parties both these petitions are heard together. With the consent of the parties, both the petitions are heard together and they are being disposed of by this common order.

(2.) One Global Shiptrade Pvt. Ltd. the petitioner in SCA No. 7481 of 1997 and M/s Madhav Tools a partnership firm the petitioner in SCA No. 7484 of 1997 are carrying on business of ship breaking in the ship breaking Yard at Alang, District Bhavnagar. In the normal course of its dismantling, breaking up the petitioners are effecting clearance of such ships by filing bills of entry with the concerned authorities at Alang and by paying the customs duties therein. The normal procedure for filing a bill of entry for clearance of the said ship is of setting out in the bill of entry weight of the vessel and details of consumable stores including different kinds of oils etc., used by the ship and mention the relevant Tariff items and the said ship and the consumable stores lying therein are allowed to be cleared thereafter upon payment of customs duties per the provisions of Central Excise and Salt Act, 1944 (hereinafter referred to as the Act), custom duty is payable under entry No. 89.08 and 9805,10 under which the customs duty was being paid by the petitioners was of 2 per cent.

(3.) Both the petitioners had filed their bills of entry for assessing the custom duty at 2 per cent and the bills of entry made by them were also cleared by the authorities. But the respondent No. 4 addressed a letter on 26.9.1997 to the petitioner-Global Shiptrade Pvt. Ltd. and on 18.8.1994 to the petitioner M/s Madhav Tools that the custom duty has been raised from 2 per cent to 5 percent and they were called upon to pay and deposit the customs duty at the rate of 5 per cent by stating that said customs duty was raised from 2 to 5 percent on 16.9.1997 on account of the promulgation of the amendment to the Act by the President of India.