A V JAIN Vs. UNION OF INDIA

JUDGEMENT

(1.) This petition under Article 226 of the Constitution of India seeks to quash an order rejecting an application for refund of Additional Duty and a consequential direction to respondents to pay the same along with interest and costs.

(2.) Points that arise for determination in this petition have to be considered in the following background :-

(3.) Shortly stated, the case of the petitioner is that the imported article being a film, was entitled to exemption from Additional duty vide Notification No. 228-Cus., dated August 2, 1976, as amended by Notification No. 443-Cus., dated November 29, 1976 - hereinafter referred to as "the Exemption Notification/Ex. 'A'. The notification exempted articles made of plastics, all sorts. There was a table contained in the notification which excluded various substances from the benefit of the exemption, but a film would not fall under any of the excluded categories. The decision in Precise Impex (supra) covered this point wholly. In so far as the reason given by the Assistant Collector and the appellate authority for the rejection of the refund applications was concerned, petitioner contended that the same was in disregard of numerous authorities of this as also other High Courts, wherein it had been held that Section 27 of the Act did not apply to claims for refund of duty recovered in violation of law. Petitioner discovered the mistake of law within a month or two preceding August, 1986. The claim for refund having been made within three years of the knowledge as required by the ordinary law of limitation, should have been acceded to. The failure of the authorities had compelled petitioner to come to this Court invoking its jurisdiction under Article 226 of the Constitution of India. The order of the Assistant Collector, as confirmed in appeal, be quashed and a direction be given to respondents to make a refund of the amount collected together with interest at the rate of 18 per cent annum, right from the date of collection.