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Extent of exemption from Customs duty on imported viscose staple fibre under a Central Government notification. Analysis: The judgment delves into the distinction between different varieties of Customs duties and the nature of each, specifically focusing on basic duty and additional duty. The Customs Act, 1962 deals with Customs duty proper, known as the basic duty, while the Customs Tariff Act, 1975 levies an additional duty, also termed as countervailing import duty. The judgment emphasizes the importance of understanding these distinctions to avoid confusion in levying duties. The judgment elucidates that the Central Government has the power to grant exemptions from duties under Section 25 of the Customs Act, 1962, and a similar power exists for countervailing import duties under Section 3(6) of the Tariff Act. The notification issued by the Central Government determines the coverage of the exemption, whether it applies to basic duty alone, countervailing duty alone, or both. The text of the notification is crucial in interpreting the scope of the exemption granted. In the case at hand, the Central Government's notification exempts viscose staple fibre from Customs duty exceeding 10% ad valorem. The judgment highlights that the notification specifically refers to the duty leviable under the First Schedule to the Customs Tariff Act, indicating that the exemption is limited to the basic ad valorem duty and does not cover the countervailing duty. The principle of 'expressio unises et exclusio alterius' is applied to interpret the notification's coverage. Furthermore, the judgment addresses a preliminary objection raised regarding the court's jurisdiction under Article 226 of the Constitution. Despite the objection, the court proceeds to dismiss the writ petition, emphasizing that the exemption granted by the Central Government does not extend to the countervailing duty, which remains payable by the petitioner. The ruling vacates the earlier rule and orders the dismissal of the writ petition with costs. In conclusion, the judgment provides a comprehensive analysis of the issues surrounding the extent of exemption from Customs duty on imported viscose staple fibre, emphasizing the importance of interpreting notifications accurately to determine the coverage of exemptions granted by the Central Government.
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