SOUNDRAMMAN TEXTILES Vs. COLLECTOR OF CUSTOMS, CUSTOMS HOUSE

JUDGEMENT

(1.) THESE are petitions for the issue of Writs of mandamus directing the respondents - -Collector of Customs and the Union of India to refund the countervailing duty collected from the different petitioners in respect of import of art silk yarn from various countries under the licences issued to them. The petitioners in these writ petitions had imported various quantities of art silk yarn during the period from 1st April, 1961 to 31st December, 1964. In respect of these imports they were called upon to pay customs duty and also countervailing duty and the same were paid by them as demanded. It is not necessary to set out the particular amounts paid by each of the petitioners on accounts of countervailing duty. In these petitions a common question has been raised as to the validity of the levy of countervailing duty, though the amounts involved in each one of those cases are different.

(2.) THE import itself was, as already stated, prior to 31st December, 1964. The countervailing duty also was paid as and when the imports were made prior to 31st December, 1964 itself in all these cases. But W.P. No. 3116 of 1969 was filed in July, 1969 and the other petitions Were filed in the year 1970. The immediate provocation for filing those writ petitions, as stated in the affidavits in support of the writ petitions, was that in a batch of Writ petitions decided on 14th March, 1968 this Court held that the countervailing duty is not customs duty and the two were kept separately and distinctly and the surcharge which could be levied on the customs duty could not be levied on countervailing duty. Though this batch of writ petitions related to the question of surcharge, it is interpreted and relied on by the petitioners for contending that the authorities should levy only customs duty on imports and having regard to the nature of the countervailing duty, the respondents had no authority to levy the same on imports. Accordingly they applied to the Collector of Customs for refund of the countervailing duty paid by them in the first half of the year 1969. Having got a rejection of their applications for refund, the petitioners have filed these writ petitions.

(3.) COUNTERVAILING duly was levied in these cases under Section 2 -A of the Indian Tariff Act, 1934, which was introduced by the Indian Tariff (Amendment) Act, 1962 (III of 1963), read with Section 22 of the Finance Act, 1963. Section 2 -A reads as follows: