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Issues:
Challenging legality, validity, and constitutionality of customs duties on import of aluminium rods/ingots and ad hoc exemption order in favor of MMTC. Allegation of discriminatory treatment violating Article 14 of the Constitution. Applicability of duty on the date of goods' entry into territorial waters versus date of bill of lading. Analysis: 1. The petitioners contested the customs duties on imported aluminium and the exemption granted to MMTC, arguing it was discriminatory and against Article 14 of the Constitution. They also questioned the timing of duty imposition, whether at the entry into territorial waters or at the bill of lading date. These issues were addressed in previous judgments like M. Jhangir Bhatusha v. Union of India and Bharat Surfactants v. Union of India. The petitioners argued against favorable treatment to MMTC, citing lack of valid reasons. However, the Court found no merit in this argument. 2. The MMTC and Union of India explained that the exemption for MMTC was necessary due to the high international market price of aluminium. MMTC highlighted potential losses if duties were imposed, requesting reimbursement from the government. The government, considering the economic impact, waived customs, countervailing, and auxiliary duties on MMTC's aluminium imports. This decision aimed to prevent price hikes and ensure uniform pricing for consumers. The Court deemed this action in the public interest and essential for economic stability. 3. The Court upheld the government's decision as being in the public interest, aligning with the rationale in M. Jhangir Bhatusha's case. The judgment emphasized the importance of larger economic considerations and public welfare in such decisions. The Court's endorsement of the government's actions reflected a broader perspective on economic policies and public interest. 4. Referring to Bharat Surfactants' case, the Court reiterated that duty rates and valuation must adhere to the Customs Act's provisions. Duty rates are determined based on the date of presenting the Bill of Entry. Consequently, all arguments raised by the petitioners were dismissed as the previous constitutional bench decisions adequately addressed the issues. The Court found no merit in the petitioners' contentions and dismissed the cases without costs. In conclusion, the Supreme Court's judgment affirmed the legality and constitutionality of the customs duties on imported aluminium and the exemption granted to MMTC, emphasizing public interest and economic stability as crucial factors in such decisions. The Court's analysis highlighted the importance of adhering to statutory provisions and previous judicial precedents in resolving disputes related to customs duties and exemptions.
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