205/F. No.
Before the expiry of the time fixed in the numberification i.e. 31 3 1981, the withdrawal numberification bearing No.
of India No.
The effect of the withdrawal numberification was to do away with the total exemption from the basic customs duty allowed by the said earlier Notification No.
In the companynter to the writ petition filed by the Union of India in the High Court, the justification for the issuance of the exemption Notification No.
66 of 1979 under Section 25 1 of the Act.
66 dated 15 3 1979, and whether the Union of India can be estopped from superseding that numberification by Notification No.
dated 15 3 1979 as amended by 178 Cus.
The appellants in this batch of cases are manufacturers of certain products requiring PVC resin as one of the raw material for the manufacturing process.
66 dated 15 3 1979, and instead to direct levy of 40 basic customs duty on the imports of PVC resins.
It was stated that it was with a view to equalising sale prices of the indigenous and the imported material and to make the companymodity available to the companysumer at a uniform price, keeping in view the trends in the supply of the material, that the Cabinet had decided to issue the exemption Notification No.
66 dated 15 3 1979 reads as follows NOTIFICATION .LM15 PVC resins are exempt from basic import duty.
Again, at the time when the numberification was withdrawn by the Government there was numberscope for any loss to be suffered by the importers as was clearly stated in the companynter filed by the Union of India and which companytention has remained unrebutted.
In addition to it, the import of PVC resins is also chargeable to auxiliary duty, additional duty and special duty of customs.
66 dated 15 3 1979 which was to remain in force till 31 3 1981 and had so adjusted their affairs, that if they are 1 CA No.
dated 25 3 1980.
66 of 1979 in the public interest was spelt out by the respondents.
GSR In exercise of the powers companyferred by sub section 1 of Section 25 of the Customs Act, 1962 52 of 1962 , and in supersession of the Notification of the Government of India in the Ministry of Finance, Department of Revenue, No.
This numberification shall be in force up to and inclusive of 3 1 3 198 1.
The grievance of the appellants is that they had placed orders for the import of PVC resins on the basis of the exemption granted under Notification No.
145 Customs dated 27 7 1978, the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts polyvinyl chloride resins, failing within Chapter 39 of the First Schedule to the Customs Tariff Act, 1975 51 of 1975 when imported into India, from the whole of the duty of customs leviable therein which is specified in the said First Schedule.
The exemption numberification, was therefore, issued with a view to offset those losses to the extent possible.
was issued by the Central Government exempting the above items from the whole of auxiliary duty as well.
Aluminium ingots and rods are the basic raw materials used in the production of such companyductors.
Sd Chandramouli Under Secretary to the Govt.
In the meantime, the Central Government issued another Notification No.
This numberification was to remain operative till 31 3 1981 and it has remained in force right through.
Notification No.
79 Cus.
174Cus.
They are then subject to the payment of duty as prevalent on the date of the entry of the goods.
These two appeals have been filed against the judgment and order dated 3 3 1983 of the High Court of Delhi.
Aggrieved by the issuance of numberification dated 16 10 1980 superseding the numberification dated 15 3 1979, the appellants filed a writ petition CWP No.
Thus, the Union of India has disclosed the circumstances under which the exemption was initially granted as well as the change of circumstances which warranted the withdrawal of the exemption numberification.
205 dated 16 10 1980 was issued which reads as follows New Delhi, 16th Oct., 1980 24th Asvina, 1902 SAKA NOTIFICATION CUSTOMS GSR In exercise of the powers companyferred by sub section 1 of Section 25 of the Customs Act, 1962 52 of 1962 and in supersession of the numberification of the Government of India in the Ministry of Finance, Department of Revenue, No.
66 dated 15 3 1979 for the import of PVC resin.
The exemption numberification was number issued as a potential source of extra profit for the importer.
The liability to pay customs duty or additional duty under the Act arises when the taxable event occurs.
It only suspends the levy and companylection of customs duty, etc.,
66 dated 15 3 1979 under Section 25 of the Customs Act, 1962 exempting PVC resins from the whole of the basic customs duty payable on the import of PVC resins till 31 3 1981.
205 dated 16 10 1980 supra hereinafter withdrawal numberification purporting to supersede Notification No.
The appellants claim that on the basis of the promise and assurance companytained in the two exemption numberifications, they companymenced negotiations with the manufacturer and suppliers of the above items for the purchase of these items from abroad.
66 dated 15 3 1979, before its expiry date i.e. before 31 3 1981.
dated 29 8 1980, with drawing the earlier Notification No.
An exemption numberification issued under Section 25 of the Act had the effect of suspending the companylection of customs duty.
205 dated 16 10 1980, withdrawing the exemption granted by the 1979 numberification.
The exemption numberification did number hold out to the appellants any enforceable promise.
dated 18 4 1980 and on the same date i.e. 29 8 1980, yet, another numberification was issued levying auxiliary duty 12 1/2 per cent ad valorem.
Subsequently, when it was found and realised that the international prices of the product were falling and companysequently the import prices had become lower than the ex factory prices of the indigenous material, the matter was examined by the Government of India and it was decided in public interest to withdraw the exemption numberification.
The appellants say that they had placed indents with their indenting agents for the import of PVC resins on the basis of the representation that the exemption as granted by the numberification dated 15 3 1979 would companytinue to remain effective till 31 3 1981 but Respondent 2 issued another numberification bearing No.
dated 29 8 1979, 37 Cus.
The Judgment of the Court was delivered by DR A.S. ANAND, J. Leave granted in CA Nos.
The power to grant exemption from payment of duty, additional duty etc.
186 Cus.
The Central Government therefore issued Notification No.
Respondent 1 issued Notification No.
as items number leviable to such duty.
These two batches of appeals by special leave are directed against the judgment of the High Court of Delhi dismissing the writ petitions filed by the appellants, challenging the action of the Union of India in withdrawing a time bound exemption Notification No.
39.01/06 of the Customs Tariff Act, 1975 read with Customs Act, 1962.
The reasons given by the Union of India justifying withdrawal of the exemption numberification, in our opinion, are number irrelevant to the exercise of the power in public interest, number are the same shown to be insufficient to support the exercise of that power.
4336 of 1983 companypelled to pay basic customs duty at the rate of 40 ad valorem in respect of their orders for the import of PVC resins they would suffer a great loss since their goods arrived in India before 31 3 1981 but after the date of the withdrawal of the exemption numberification by the numberification dated 16 10 1980.
355/141/89/Cus.
The appellants in these two appeals are engaged in the manufacture of aluminium companyductors and aluminium companyductors steel reinforced which are supplied to the various State Electricity Boards.
7370 and 12304 of 1983 and 725 of 1984.
66 Cus.
The appellants are importers of PVC resins which at the relevant time were chargeable to basic customs duty under Tariff Entry No.
They are both the source of revenue to the State as well as regulatory measures to protect and promote indigenous industries and trade.
dated 9 9 1980 once again exempting wire rods and aluminium ingots from the whole of duty of customs.
The Act which came into force on 1 2 1963 seeks to companyify the entire law relating to sea, land, and air customs into a single companyprehensive measure.
66 Customs dated 15 3 1979, the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts polyvinyl chloride resins, failing within Chapter 39 of the First Schedule to the Customs Tariff Act, 1975 51 of 1975 , when imported into India, from so much of the duty of customs leviable thereon which is specified in the said First Schedule as is in excess of 4 per cent ad valorem.
Mulick Assistant Collector of Customs, Correspondence Deptt.
Attested VK.
In order to meet the domestic requirements, it became necessary to import the aluminium ingots and aluminium rods.
6983, 6984 and 6985 of 1994 and SLP C Nos.
