1987 (7) TMI 119 - HC - Customs

Summary

Issues:
1. Validity of Customs Notification No. 40/87 rescinding earlier exemption.
2. Effective date of Customs Notification and its application to imported pulses.
3. Interpretation of notification issuance for exemption benefits.
4. Cancellation of Bank guarantees due to successful petition.

Analysis:
1. The petitioners imported pulses benefiting from total exemption under Customs Notification No. 129/76, which was replaced by Customs Notification No. 40/87 imposing a 25% customs duty on pulses. The key contention was the effective date of the new notification and its application to the imported pulses.

2. The communication from the Government of India Press clarified that Customs Notification No. 40/87 was printed on 16-2-1987 and made available to the public on 18-2-1987. As the petitioners filed bills of entry before 18-2-1987, the court analyzed the issue of when a notification becomes effective. Referring to a previous case, it was emphasized that a notification must be made available to the public for it to be enforceable, not merely printed in the Official Gazette.

3. Applying the legal principle from the Asta Tobacco case, the court determined that the date of public notification is crucial for the effectiveness of a notification. Since the petitioners filed bills of entry before the public availability of Customs Notification No. 40/87, they were not bound by the new duty and were entitled to the exemption under the earlier Customs Notification No. 129/76, which was in force at the time of import.

4. Consequently, the court allowed the writ petitions, ruling in favor of the petitioners. The judgment also addressed the issue of bank guarantees furnished by the petitioners during the proceedings, stating that they would stand cancelled due to the success of the petition. The court did not delve into other grounds raised by the petitioners as they had already succeeded on the main issue of notification effectiveness.