CENTURY FLOUR MILLS LTD. Vs. UNION OF INDIA

JUDGEMENT

(1.) In these batch of Writ Petitions, the petitioners have challenged the validity of the Notification issued by the Government of India, Ministry of Finance, in Notification No.127/99-Customs, dated 01.12.1999. Since the prayer in all the writ petitions are identical, it is suffice to refer to the facts in the lead case viz., W.P.No.20358 of 1999.

(2.) The petitioner imported wheat falling under Customs Tariff Sub-heading 1001.90 of Chapter X of the Customs Tariff Act, 1975 from Australia. The petitioner filed Bill of Entry for home consumption on 01.12.1999. The assessable value of the bill of entry were Rs.14,86,132.54 and Rs.21,58,008.02 respectively. The petitioner claimed duty free clearance, but the same was denied by the Department on the ground that in terms of the impugned Notification No.127/99, they shall be subjected to the rate of 50% customs duty.

(3.) The Notification is challenged on the ground that it is ultra-vires Section 8-A of the Customs Tariff Act, 1975 (hereinafter called as the "Tariff Act"). It is further contended that Section 12 of the Customs Act, 1962 is the charging section, wherein it is stated that duties of the customs shall be levied at such rates as may be specified under the Customs Tariff Act on the goods imported into or exported from India and wheat has been classified under Sub Heading 1001.90 provided for duty free clearance and in Column No.4 of the Tariff Table, no rate of duty or Nil rate of duty is specified, but only the word free is mentioned. Unless the rate of duty is mentioned in the Customs Tariff Act, imposition of fresh levy by way of Notification cannot be issued under Section 8-A of the Customs Tariff Act to increase the rate of duties. Therefore, it is contended that the imposition of 50% of the Customs Duty on the imported wheat is ultra-vires of Section 12 of the Customs Act and Section 8-A of the Customs Tariff Act.