TRADEX INDUSTRIES Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioners are engaged in the manufacture of fibre glass and for that purpose they import glass earn of Asahi fibre from Japan. They imported certain quantity of this product between 9th May, 1978 and 17th January, 1981. The petitioners were forced by the Customs authorities to pay countervailing duty on the said product to the extent of Rs. 1,76,421.62, details of which are given in Exhibit 'C' annexed to this petition. The petitioners contended that by notification dated 16th March, 1976 the manufacture of the said product, namely glass yarn, which is spun out of fibre, is totally exempted from payment of countervailing duty. The respondents refused to accept this contention forcing the petitioners to approach this Court under Article 226 of the Constitution of India for claiming refund of the amount paid by them under protest.

(2.) Mr. Thakkar, the learned Advocate appearing in support of this petition, has pointed out of these facts which are mentioned on affidavit in the petition. He has also invited my attention to the notification dated 16th of March 1976, which is annexed to this petition at Exhibit 'A'. It mentions that in exercise of the powers conferred by sub-rule (i) of Rule 8 of the Central Excise Rules, the Central Government exempts yarn spun wholly out of glass fibre from the whole of excise duty levied thereon. In fact the petitioners were cautious enough to make an enquiry with the office, of the Assistant Collector of Customs. The Enquiry Officer of the said office, by his letter dated 3rd October, 1977, informed the petitioners that there was no countervailing duty payable on the import of fibre glass filament yarns. It has been mentioned by Mr. Thakkar that after the notification of 16th March, 1976, some of the consignments imported by the petitioners were in fact allowed to be imported without payment of countervailing duty. It is only in respect of those products imported between 9th May, 1978 and 17th January, 1981 that the respondents made their illegal and unjust demand which the petitioners satisfied under coercion and under protest.

(3.) The petitioners have also annexed to this petition a copy of the order passed by the Government of India, Ministry of Finance in the Department of Revenue, in a revision application preferred by M/s. Montex Glass Fibre Industries Private Ltd. It is at Exhibit 'D'. The said company was also importing glass yarn of Asahi fibre - the same product which has been imported by the petitioners during period of mentioned above. The Government held in its order disposing of the said revision application that the impugned glass yarn being wholly made of glass filaments was covered by the exemption under the notification in question. In view of this position the Government allowed the revision application with a direction that the impugned glass yarn would be exempted from the countervailing duty in terms of Notification No. 87/76, dated 16th March, 1976.