16.10.80 was issued which reads as follows New Delhi the 16th Oct. 1980 24th Asvina 1902 SAKA NOTIFICATION CUSTOMS S.R. 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.
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.
The Customs Act 1962 companysolidates and amends the law relating to customs spread over in the Sea Customs Act 1878, the Land Customs Act 1924 and the Indian Aircraft Act 1934.
66 dated 15.3.1979, and whether the Union of India can be estopped from superseding that Notification by Notification No.
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 Notification.
Aluminum ingots and rods are the basic raw materials used in the production of such companyductOrs.
66/79 in the public interest was spelt out by the respondents.
The liability to pay customs duty or additional duty under the Act arises when the taxable event occurs.
205 dated 16.10.1980, withdrawing the exemption granted by the 1979 Notification.
Again, at the time when the Notification was withdrawn by the Government there was numberscope for any loss to be suffered by the importers as was clearly stated in the companynter filed by the Union of India and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.
29.8.79, 37 Cus.
205 dated 16th October 1980 supra hereinafter withdrawal Notification purporting to supersede Notification No.
Collector of Customs, Correspondence Deptt.
These two appeals have been filed against the judgment and order dated 3rd March 1983 of the High Court of Delhi.
2 issued another Notification bearing No.
The exemption Notification, was therefore, issued with a view to off set losses to the extent possible.
The appellants claim that on the basis of the promises and assurance companytained in the two exemption Notifications, they companymenced negotiations with the manufacturer and suppliers of the above items for the purchase of these items from aboard.
The power to grant exemption from payment of duty, additional duty etc.
355/141/89/Cus.
66 dated 15.3.1979 reads as follows NOTIFICATION PVC resins are exempt from basic import duty.
Before the expiry of the time fixed in the Notification i.e. 31.3.1980 the withdrawal numberification bearing 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 Cus.
dated 29.8.1980, withdrawing the earlier Notification No.
was issued by the Central Government exempting the above items from the whole of auxiliary duty as well.
1671 of 1980 in the High Court of Delhi invoking the doctrine of promissory estoppel and praying for a direction to quash the withdrawal Notification to the extent that it superseded the earlier Notification before, the expiry of the date i.e. 31st March 1981 and a Division Bench of the Delhi High Court vide its judgment and order dated 16th March 1983 dismissed the same.
79 Cus.
dated 18.4.1980 exempting aluminum wire rods and aluminum ingots from the whole of customs duty as well as the additional duty leviable on it.
66 of 1979 under Section 25 1 of the Act.
The appellants in these two appeals are engaged in the manufacture of aluminium companyductors and aluminum companyductors steel reinforced which are supplied to the various State Electricity Boards.
Simultaneously, another Notification No.
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.
as items number leviable to such duty.
66 dated 15.3.1979 for the import of PVC resins.
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.
An exemption numberification issued under Section 25 of the Act had the effect of suspending the companylection of Customs duty.
In order to meet the domestic requirements, it became necessary to import the aluminum ingots and aluminum rods.
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.
The numberification companytained the clause that the numberification shall remain in force till 30.9.1980.
174 Cus.
66 Customs, dated the 15th March 1979, the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts polyvinyl chloride resins, falling 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 four percent ad volorem.
205/F. No.
66 dated 15th March 1979 which was to remain in force till 31st March 1981 and had so adjusted their affairs, that if they are 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 31st March 1981 but after the date of withdrawal of the exemption Notification by the Notification dated 16.10.1980.
25.3.80.
66 dated 15th March 1979, and instead to direct levy of 40 basic customs duty on the imports of PVC resins.
Sd K. Chandramouli Under Secretary to the Govt.
7370, 12304/83 and 725/84.
The Central Government therefore issued Notification No.
of India No.
and in supersession of the Notification of the Government of India in the Ministry of Finance, Department of Revenue, No.
Attested K. Mulick Asstt.
66 dated 15th March 1979, before its expiry date i.e. before 31st March 1981.
They are both the source of revenue to the State as well as regulatory measures to protect and promote indigenous industries and trade.
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 31st March 1981.
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 Notification dated 15th March 1979 would companytinue to remain effective till 31st March 1981, but Respondent Nos.
15.3.1979 as amendment by 1780Cus.
Aggrieved by the issuance of numberification dated 16th October 1980 superseding the Notification dated 15th March 1979, the appellants filed a writ petition CWP No.
Notification No.
S.R. In exercise of the powers companyferred by Sub section 1 of Section 25 of the Customs Act, 1962 52 of 1962 .
The exemption Notification was number issued as a potential source of extra profit for the importer.
In addition to it, the import of PVC resins is also chargeable to auxilliary duty, additional duty and special duty of customs.
205 dt.
1 issued Notification No.
The Act with came into force on February 1, 1963 seeks to companyify the entire law relating to sea, land, and air customs into a single companyprehensive measure.
145 Customs dated 27th July 1978, the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts polyvinyl chloride resins, falling 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.
Respondent No.
01/06 of the Customs Tariff Act Act 1975 read with Customs Act 1962.
S. Anand, J. Leave granted in C.A. Nos.
It only suspends the levy and companylection of customs duty etc.,
6983, 6984 6985 of 1994 SLP c Nos.
The appellants are importers of P.V.C. resins which at the relevant time were chargeable to basic customs duty under Tariff Entry No.
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.
In the meantime, the Central Government issued another Notification No.
The effect of the withdrawal Notification was to do away the total exemption from the basic customs duty allowed by the said earlier Notification No.
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.
This Notification shall be in force upto and inclusive of 31st March 1981.
