BARIUM CHEMICAL LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) BY this petition, the petitioners - Barium Chemicals Limited, and a shareholder of the said Company, have inter alia, prayed for the following reliefs in the petition :

(2.) HOWEVER, Shri Korde, the learned Counsel appearing for the petitioners fairly stated that as far as the reliefs claimed in the above terms by prayers (d), (e), (f) and (g) of the petition are concerned, the issues are concluded against the petitioners in view of two Division Bench judgments of this Court in the case of (i) (Ashok Traders v. Union of India and another) reported in 1987 (32) E. L. T. 262 (Bombay) and (ii) (Polyset Corporation and others v. Collector of Customs, Bombay and another) reported in 1985 (2) E. L. T. 48 (Bombay ). In view of this position, it is not necessary for us to deal with these contentions which have been admittedly, been concluded against the petitioners by the said two decisions referred to above. However, what survives for our consideration is the question of the plea of promissory estoppel which arises in the following facts.

(3.) THE first petitioner (for short "the Company") carries on business as the manufacturer of chemicals and deals in chemicals. In the course of its business the Company imports chemical known as "polyvinyl Chloride Resins" (for short P. V. C. resins) which is marketed as P. V. C. as a raw material for the manufacture of the products of the Company. The said chemical is chargeable to duty under Entry No. 31. 01/6 in the first schedule of the Customs Tariff Act, 1975. The Customs Duty payable on P. V. C. resins before the Finance Act, 1980 was 100% ad-valorem and, in addition, under section 47 of the Finance Act, 1981 the auxiliary duty at 25% ad-valorem was payable. The said Finance Act also enabled the Government to grant exemption in respect of auxiliary duty levied under section 47 of the said Act. By Notification No. 341-cus. and 342-cus. both dated 2nd August 1974 as amended by various notifications upto 16th February 1982, in case of imports of goods specified therein which included P. V. C. resins of Romanian origin covered by Heading 39. 01/06 in the First Schedule to the Tariff Act, the duty payable on P. V. C. resins was reduced by 50% of the standard rate. Under Notification No. 30/82-cus. dated 28th February 1982 (Exh. C to the petition), issued in exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 the Central Government, on being satisfied that it was necessary in the public interest so to do, exempted certain goods falling under heading No. 39. 01/06 of the first schedule to the Customs Tariff Act, 1975 specified in column 2 of the Table from so much of that portion of the duty of custom leviable thereon which was specified in the said first schedule, as was in excess of the rate of duty specified in the corresponding entry in Column (3) of the said table which is reproduced below for the ready reference :