Karnataka High Court
M/S Ruchi Soya Industries Ltd vs Union Of India on 20 January, 2012
Bench: Chief Justice, B.V.Nagarathna
éU$GE\z'IEF«§"'§' Vikramajit Sen, C3.
These writ: petitiens have been fiiéé%;::<ier. $.i'§:i<:ZVé-2i25v. a§:d 22'? $5 the Cgnstitution sf India; a11d»'%1Va€23TAEeeT:1-- __§e::<i.i:1;§"«§§§é*,§ne 'A ' decade' it Contains sea/era} p§ayé:§,"~k;ut €}s€;__ for 'stilt purpeses seek the issuang: of '<Z1.Q5.:fA6(3.€i11g that ihe Netificatéan N338/2OO2~C{isV:A'-{.E\?ff.§--.' . ¢§é;{§;é--..1f3.@6,2QO2 is not applicable to the i:r;§;'91jted:"gé§'<.hfl'§; 164K414 metric:
tonnes sf studs cf Entry far Earns 'subjec: shipment'); for an Order is :10: Eiable ta pay any adéitianal/d§f§éi?§i:fi§1V'éfi§i3 ts the saéfi' shipment sf crzgde pa§:;;g;';eL§.§;; subjegt Ne'gifi,<:ati@:"1 is effective 31:33; G4;O'?.2@G2% *3}; way sf rinierim refiei 'she R6S§C¥§'§fd;':E§';;':'5€ :S"'1"1;?"a.€}i diracieé ta raéeage the Subjecé shé§me:r:: an fife _ba$§s"€:é' €136 ééity 5lI'€3.§}?" paid by éha géiiiéafisz' ané E3: aéééiéga %j§:"e.=:9:'%.*e7fi%:;..$V:%: ;;:s*§é,:r::§$h§::g "25% bafik guarantee igggarég éazifferezrfiiai Lsarfied Caunsfii far the pariéas hays '$662': Ezsaré ifi €1,113
3., fine faeie; ee fey ee relevant for figze perpese ef deciding Eheee petitietes, eye that the gsubjeei ehipment' ief: MéE.ej¢sie. in June 2062, Q2: 1232692332 the petéiieners flied a for Heme Censumptien in respect thereof and if; e-:;z:fei*11:§§:§""'<§itifs;_ Notification No§29j20G2-Cus (N."£'1} daiied fie.5;'2oQ2-§a:e.eL:a'kemu ea %'2,:6,3:,258;z Hewevers 1:: £e_r;::.e't ifi'<§i$puteeV.v:V}:V;§§_ehei'; ?§ubjec:
shipment' actually arrived in india'vL2';-j:}y_Ven £E1e Ti'e"1Eeiéging day on };3.6,2{)Q2 at 3.59 aam. that by that date enhanced ta:iffA._beeavme..:.§a};*'e;e%,e ef Netifieatien No.38/20e2»eus_ ifV"'V.E§"""§aragraph-10 of the petitiens it saifl Notifieatier: "Was issued/published: 12.00 1100:: en 13.6.2302.
it is eaiegotieeiifi' issue and its erinting in ihe Geye:nr::e;§§§VV§'rese the said Neéifieeiéen eeuié have bees éeeueei .ene;';;:9i2?::i§e§'1ee§ $1': the effieiai gezeize eniy after EZGG i'=__1*:veen'gig-«.,§3V,5;§'{,3i3A:€; and me': befere 'ihait, Further? the Said 7eE*§e"{if§Veat§e'§: .a3s..,~§e;§eshee in :he effieiai gazette eyes effefeé fer eefi éiefié aVaiia'::3Ee fie ihe pufeiie and eihere iaeiudimg the ' ;§;e?;ié:§e::e:" eem§a.::}; er: §%,5<,2§Q2 azzd me': 'eefere the: The eeié "'§€e.€:'§ea:ie::§ ihereferea has ee e;e§3§éeae§i':jg at ed} to flee efereeaéd mmummmuwmmmmwwr.m.w...m_.._m...M...
6 Qsngégnmeni GE Crude paémalem imparted by thfi pétiiiensr sampazzjgf'
-J:-"L Learned sotmsfii for £13 petitioners has fifstlgfu'é§i§i*:§é;:1d€d that the ralevant date fer calculation sf iheé if iV:Vhje ': Bill of Entry, which accarding is him J faliawing day 13.6.2382; that thé»t.§§;ff/d{i':;r__ §§;:rea'§ed mg $ 372 :0 $ 411 gar métric Qié;:'A§tVAv"<;\r0uid :10': be sanguine to believe that wind of the iiafiff irzcrease and for :0 {$16 the Bill of Entry in anticipeLt'ic;:3"---.%i':"' 'subject shipment} into India, 1%: Zés the ship entered Indian ierritariai R¥&;i{3:" if: 'the dock at 5.50 am am E3.S5.2QS2,_ make any differemca fer Iiafbiliiy 1i:0 pavgfié éiifée §ari:'§% A. E6621 giaced by Eearztsed $663286} fa? {he '7'§e§i?'::°Q:1e:s" {}:1T €;h'é §§'iZiS;§QE'i 88:162.': Juégmani reyerigeé as Param .§:§éii;§»§::ie%s._.AL§ifi§te§ --"i?$»« ilaéagrg 9:' Enfiia ELR 29%;}: mg 453$ in "~ *:-T:j1; 8.*£«T.'s:a;;e:§b,' éhe tayiff vajzsé in F€3§¢i'€':§ af EBB Paimsieéa hag: 'gear: SS 372 wiih effeei {mm !33,G8,2G€%L $336 ajiggaiésn was .5;
{4} Eyes}? Nefificatésn issusé Lmdsr suvb¥--.T ssciissz (3; GI" suhssciisn (21%) shafi ~ .
fa) imlsss otherwise pmvidefi, cargis :"
farce an the date of its iss1:;sW};)y "£}::'<~:'~-_ Government for publication in this . T (13) 3:139 be published and:4o_ff'é:jsd f¢:;,si93e= the date of its issue by thé --_Tl:,'l"};'§7$Cf{)AJ;.'V.-2J,__€5 and Public Relations oi the B<V:_»_3.:.f:<';§,_V_;E's§V::-i,_vva; §é'1h§',_ H i {S} N<3tx&'ithsta1§._<§if3_g a:;3?1ili£:1=§ '::Qn{ainsd in subwsectios. (4)? where Elma fsrce an a date iatsr tlse Vissus; the same shafi be pp:b§§.shé;§§.';V--sfifi:_.§fi£+::re-(ii :f_c>r__ssy};€ by the said Directargts Relations on a date cf: 01:91 cm which the said Nséificafish«.cé:r:ss»'»i;:{::s"f§:*'<::é--; (6) :'~F_;fi)'s:w§v*sv;h.s£22.:§disig anything contained in this. CE:it3<'. isgséi be cofiecteé if the smear}: sf aqua} ':9, gr Eess Ethan, Qfifi hunfirefi éfl "5®Li:9 sifiiééitisn Eiss aiss %€€1?: érawn is ihs gzrsvisisns sf _ _ '_§§§caiée:>_.:3 £§'0§fi{§.;sVCus€Gms Ad; 1962 which is reproduces: belsw far A c 5335.. sf i'€§fGif€:¥}gC€;
' _' _ '"§;S. Eats fer fieierminatisn sf rats 9:' éiziy sgzé iazfiff szaiuatisn sf importeé geafisav {1} Ths rs/as sf C§.E3;§}7 A ' _ 331$ Eamff vaiuaézsn; 15 arzjgfi, aggphcabis is any :;:::;s<:zr§:s{:§ gsscéss shafii 'S5 33:6 ffiaé sjici vsisusigiszs in fierce» (5.) in 'fghs gags {>5 geecis €:r:':i&re& fa: hams CQ§'1S1,E1"I1§E§§IZE under segtizir: 463 on file date on which a isifi of ezgtry ii'? rsspacé §f such gcaeds is }f}E'€S€I1E€5; ufidsr ihat sgeézizierig
(b) in file case cf gseds étieared fram 8, war€h9u:3"e.:'u:id_er section 68, an ihe data: an Whish the gcreds at-e.'_«'a<;':?.€'3li:; removed {ram 'aha warehause; . 7 _ (C) in the case sf any other goada on the _d,a:}e~~..Qf g-:'2;.§zr::et:ii_ Qf duty: i PROVIDED that if a bill of <::r:::§:3:y E135: 'be'éAn'..p'1i<:;3efij;_eci before the data of entry inwards i>_f '"E':he"v_ée:.$eE ::=_L;r"=.:h-:53. arrival cf the aircraft by w£»::i_<:h the ge0ds[.$;n~:-. §:f1p<i{:"té:i,' the bill ef entry shali be dee::i'ed to have _}:@¢:i'..1jj:"e§én€ed * on the date sf such entry ir1:%;7'a7:*<I:s er ii-'3.¢ 9:ft'iv:3.L as tha case may beu (2) The provisians I19': apply E0 baggage and goqds impf'Q:tb:'E_:V:§ byA%}L§ st?%»f 1 "
The previge ta by Act 33 cf 1996 and "ii1is guestisn. "§h<:--: §etitio:1 iiseif pEeadsV:"'~ih'a%; arrived at 5953 am an 1366,2332.' _ of Entry 33133} be éeemed, :8 have ?U§:j?é:":«.5Q:e;%f:éiii%:<;é 9.13:2}; ":§:"1a€ time, and at :33 pgirzt afiiaréer thareis. T%:s 'N_:§%:;f§é;1:§c::f§ Efiafiiigg been gazeéiafi 3:': §,3.%,2§s:32, €313 subjess:
7 "'3§§§:z1e::;__W£>"a;Eci E:V.sTEéab1e Ea: §€V§§S §§"€$€3I'§b€§ ihéffiifi, 852$ :29? in ..,.»we " -«éL§:€«{3_ 1*;§a:3C€ '§;>v?;{:2 '£333 {£863} i'Sg§EI1€ aitaéfiiag 3:: E316 §I"€'%'§GLE:S dag:
' ' H'? 3123 maxi grgumsm §E'G§€§"€d by the Eearnsé ceuzazssl fa:
if--éiE2é"g>€ii§§9§1€:s is §E'€§iCB_iEé s<:§.3a.rs§§; er: the rafia Gf E3§.v§$é{>::V 5 E4?-
Ezava §5<::Qr::::1e::§e§ that it E95 piaced b€f13re a Eargsz" Bench; Eawearer, Ehs pasiiéen is {he}: the C1;.}S'EGEI}SV*'E%i€:'x§L};8£§iQ§1 (fietarmigaiioa Qf 'Value sf Empsrteé Gaads} Rzg1e3§.'.;_JT}:8 :8< :'§§g;é:=:u 1710: brought tea the natice Gf the Division Bench, 'C,1'1C)T,':§§'§z:§%£37:::3...:I}€ >';?é._f been breughi :0 our natice is the 2QO?:v"§:g11é's 3x-figiczifti§5:'e_§@€é%*:§1:é:1i ti-:t>;__ Ehe 1988 E21163 insofar as the ciefiniticz:"under,.-%,:<:{:iS£d.e}:'é:i<3i§~is concermed 3.116} which have s11per"5S€.Ql€«:1 19 8~8 VR:i1€s:<, Hausa the principie Qf séarg decisis si';%,_:§'é_.s Ciiiutéti-.._¢gfi"3,c:Caun: af them 'aeirzg no zeference :9 tbs 1988 ;R:_f£e.s t}ieV'1:§..iy-33103 Bench which éseided Param i:1é;§,1si:*ié;_*;i E'_;fi€~2f' :_>f"'fib;<:~"i988 Ruies which are applicable to *:heS<:§ Cié.é';if:s r éadé":é;g._ i:':'r'id$'1;: V "vE):;e§i1:it£::_ris:fV"xi 1T§.._ E':<:n ';ihess 311163, 11333638 file Camiext oths3;r*wésé' reV€;;:§::e:§;;
fi§':;j;\ '-xg?gé':Z§ 535 {E15 "" "S3318 ciass 23:' §<:1":*1&'1 magma §:1':j§;;':"i:é:é%«._g::?§;iS":ha§: 33$ wiéhin 3, graup Q17 Fangs agf i::é;;3é:*A'1:séA géiéfis greéuceé 'bj; a pastiauisf énfiustry 0:'
-- i:':Q';:§L%:&ir:£éfi "séécier azzrj zénciufieg iésntécai gcaés :3?
H Véémiiar géeds;
~ fcgféideniécai gaeés" EEJESSJES impgrtsd g<3:3ds-
" '{'i§'évh£€I*: 3:5: gama in ail '£68 €€fS; §r:<:§::<%:;:*:g §§'?a§S§C8§ €;%1g::§:<;f:e:i$'§r:s§ qizaiiijg 31:5: r€§u%:a:é<::§: as 'the gaads zgsfgéwg Eé but ska}: net i§}Ch1(3:€ impsried ggeés whsrfi e:r:gin€ai:ing§ fisveiepmeni :mrk§ arii werk, werk, plan 9:' sketch undertaken in iné'is{W€A2"é_%f:é: -5 completed directiy 0:' indirectiy by th€_..b§y§f:wA.{.:§n these imported goods free sf cha;i:4gA:é":>';° .ai: a-:
€03': fsr use in cennectien with {he sale fQ:'eXpor1:Qfth€se impGif_t_é§d..VgeoAGZ'~s.:" . 9V é {emphasis has been Had these Rules been br0L1ght':(§L'v'*i3}1é :2.;t_Li:':3.fg;€iVi§'_::1 sf cur esteemed Emi:he3rs in Param, «3€§1;d:I;st§§*ie§s'ihimitéfi, iarsuld have becorrm manifestly p&t€flgt'V1F1.Qt£~.f€'L:S:' i1":€Vj--«.<;',:.<§~:%r:_:'1*i_c>fi,:iti.;€'s dealt xzvith in Chapter~ 35 0f SeCti0n~£§i~:%,:f:g%3;:i<i§§f :1;f53.q%;:i§'eri is dag}: with i§€:E1i§CS.fi:y', 8, ififé' u:3i§afi Ehs pravésiarzs cf Chapi:€r~15 f@z;::§ Se<;:§{3:::<.E§ eif t'§<1§" Cfu3v*€ar::s Tariff Act }9?'f:3. They read thus:
X :1: Céjsstspgzs Tariff :9*?5:
_ A Chap§:e:-13 ';%;?:~imaE er vegetahie fats 33$ aiis afié their A ":A_'§i;T*'§A,f€;%§!'§i;r'*':%g€ yméigcisg yregared ééifie fag; afiimai $3' vegetable waxes.
{M} R) that abs irarzég Vaiufi Sf ihe gcrads canrzst be p:"esc:"ib€:i sepazateéy for sash csf tha sevsrai subject headinga Cfifliéififié 3:11 Se:::t§cs::-EL Chapieirfié Gf 'ihe Quséams _ Accerdinglyg we held that préscribing §jffe:*er.%.~€;'":z§fiffS §§:"1i;/ Palmolein 0: Palm Gil cevered by Hé_3.d§:'1gj 'Né:.f_"§;S'.1§ fi.§'got vioiativs Qf Ar"::;::is~14 cf the Censi'i_tv,.1;i0n "cf f1";fii8;; A7[i'}:1.e?:VV};<23si*:io::1V:L' stands amply clarified by :he d¢_§i%;éfiiC:j RT§;vjl'e of the Custams Valuation Ruies. V 11; In Hi:':?gI4':.';P;i.ast;§ <:s€»'§§fiis«{'"*»§9i1§e§2'tbr cf Custcms, Bombay, 1994 --their Lerdships have Clarified the shc:>a:Zd be the tax is 0: maiier 320223 Caufis but by the appropriate :r:s£rume:':i§:§;'tie%Lér_fafi,é;t'§0A%i;%%ié.:§'. Viewed frem aiéy aagiej Ehe :>v:§i€'g:>e':i:ieE:s:"-~3.:'::i §ev::»E§'"*<:f meriéts azzfi ihey are fiabia :9 Es §1gn:>;:s;sTe_d;' ~ ~ "
V --V 223 '.4 'E§7é A é:3'::"2<:E:1d€ {hat the 8%} cf Ezzfzry mug: be is héve basg yrssenieé 0:: 13.,Gé.2QG2 aaé :19: Q2:
S€<::3:":§;§}3 ,?'§a§:§fiQa':i{;::': daéefi E3.QEu2SG2 Wsuié fig ihe guhjécé: $%2i§:::€z1*: siacs :2: was §3E.,1b§Z§Sh€§ in $135 EV K») Qfficiai Gazeiiée an that date ané accardiagiy 32%: was ei{f£z:a<:i@:2,s fram the cammencameni Sf that daté itaelf, Thircfigi, {hes Parhiamfint itssif £8 empewered is presxzrfba and m<'>;:iifyL- 'f:*é:.1f1 time to time, {he different tariffs for each cIass__§j€~-..go:§§:Es§_ cije'a§: ""__ with in the gundry headings E301 ii; :2;f SeCi:i<m~HI sf tbs Custams Tariff As:;'»':__E97 135 We are mfitnglfui :"<"~:'.c.en£"'dcQ£svi:§<;>:'1 of the Apex Court in Indian Cou"ii(:fii_i' Action --Vs-
Union cf India, (20:_1.1:)i interesi has been OI'd€3'€C§ . Gut that:
"?;1e%TVo%t§f:Lc;: .§2§§%ic}é""f:'aSi: bean dealt with in great Cféiiaif is' gay unjust enrichment 3.12:3; EEd§Séf"E'€$ xby thé iitigants. Whfie adjud;:£'sva.1;ing',.' €§;€"'C0€;s§t§ must keep the: f<>1}o:-virig " «.43$9r§:':'€§3;314i?'5s if? ..\«*§e:%9:' """ " 'V ' -.-the baumdea évgiy and sbhgatieiz sf é:"}'£{ifiV'.V.€:'i}3.:v}..3:"§:'V"_.§§Iff:T ':{iéé_"3.::'3;Eiz€ any zfizjilsi enrichmént and _ :11":d"&fi--se:'r;iea3:.!g:a.é:: mafia by any gaamtjs by iniroking file ;;21,,:A:°:i$<:%§{*:':.:i_§5é':2 sf iha Cgufé;
When 3. §3;E'i_'§? agpiisfi azizé geis 3 say Gr '«(..«':§:;:'§},fi'1'zAi3ti0£"§ {rem 'aha Ce'L3§*t? it is aiways 3.': tbs risk sgzid £'€S§GfES§G§§i};" sf fzhs §8;§°§Z}' a§§§jy'i:;:g. An :;>re:§€3:' GE stay Qamzmé be prsgumeé ta bfi Qozafermezit Qf additienaé réghz zpgn {ha iitigating §8;1"§j,/1 (3) Uizscrupulauss Eitigarits he Jprswreiaieé taking "ufiduc-2 advamiage by invoking jUfiSd§Q'fI..GYi.:_'{}f 5 ;. ' the Ceurt, {4} A person in wr0ngf1.fig';{:¥C's€es::§o::< _5:é§::o11Vi<:1.i'.V :10: only be remeved from :hat:"1.p1é§_':::€'TV gggssible but bfi cfimpeiled E5 pay f0v'r~.3&§:'i3:1g:f.i1A..§,;s_:3"Q53 that premises fine, penalty ari}3'.V.: €i:;3:s. :Xi§y'§efii§*nCy Wsuld serioualy affec€"'i:.h'e théjuflifsiai S&:5t€m. _ --
(5) No i'j*iiga:1t,'{:a12::"«dé1iij;>*s_ !;£:3:§:§§?ifi'. from the mere §ende::C.f,r o§}T>a_ca.S:3 Erhina Cézsft fiiaw.
{6} .... .._E§"p'é1f*:§>;_ ,$:;:r_iz'::§z': ":3e...;3_1§0w€d 1:0 take any bemefi*;70f his; <i:'v;7n«.._\5}1'0fig_§;v..___ -
{?} Eg:1tigafiQf§7shQE£§1& am: he permitieé :0 3:11:32 §Z1?§(} f:Ei;'f§1Z1§€f1l§'§§i5:11S§Z%?_'fy SQ Elia: iha Lzzzsszzupuigzis "§":if:§g :3;:'::3"' }3:€*é' fincauraged fie i'2?3V'C»}:€ 'aha §u:'isd.iCt§@fi cf {8}..__° énstfiuiian <35 htigatiazz Camiei be 'A 'perz:§:'iée§fi:' ta cezzfer 3355-; advantage an 5; pariy hy *z<§i::§a.j3§*ic:,f~d &sf;ien sf Caézirisfi.
25Accordingiyg the vm; petitéang are d§S};':Ei$S€{j with casts af § 25/SSS/M 311 each pef:ii:i<>1:'::. The é,nieri1::1 Orders 556 1'$r:aE}ed.
The sherifali of the éuty paid. as against demandedjieviabié under tha subject _&
13.{}§.2002 tegethef with interesl': th€recgfiAé»:fi'ii;s';:<°_at:g anmzm bs deposited by the §e:ii:iQn_ers witfzin sixégé. fréfrz taday.
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