ELKAYS INTERNATIONAL Vs. UNION OF INDIA

JUDGEMENT

(1.) The question involved in this Petition is whether the imported goods by the Petitioner for home consumption should have been subjected to Notification No. 129/76, dated 2nd August, 1976 for payment of customs duty or Notification No. 40/87, dated 4th February, 1987. By Notification No. 40/87, dated 4th February, 1987, the Notification No. 129/76, dated 2nd August, 1976 was amended and instead of the words from the whole of the duty of customs leviable thereon which is specified in the said First Schedule', the words from payment of so much of that portion of the duty of customs which is specified in the said First Schedule as is in excess of twenty-five per cent ad valorem ' came to be inserted. The result of the Notification No. 40/87, dated 4th February, 1987 is that under the said notification, an importer has to pay 25% of the ad valorem customs duty. The notification dated 4th February, 1987 bearing No. 40/87 came to be published in the Government Gazette of the same date.

(2.) In the present case, according to the Petitioner, the shipment took place on 24th January, 1987 and the goods arrived at Bombay on 12th February, 1987. Admittedly, the Petitioner presented the Bill of Entry for clearance of the goods on 13th February, 1987.

(3.) The Petitioners filed an application for refund on 25th January, 1987 claiming that they are entitled to get the benefit of Exemption Notification No. 129/76. However, the Respondent No. 3 rejected the said application by order dated 21st July, 1987 holding that the Petitioners cannot get the benefit of the said Notification No. 129/76 and cannot claim full exemption. They were liable to pay duty as per the notification dated 4th February, 1987. Hence, the application which was filed came to be rejected.