1990 (8) TMI 143 - SC - Customs

Whether customs duty is payable at the rate prevalent on a particular date or not? Held that - Relief under Article 32 of the Constitution is wholly inappropriate in the facts and the circumstances of this case. It has further to be reiterated that for enforcement of fundamental right which is dependent upon adjudication or determination of questions of law as well as questions of fact without taking any resort to the provisions of the Act it is not permissible to move this Court on the theoretical basis that there is breach of the fundamental right. Whenever a person complains and claims that there is a violation of law it does not automatically involve breach of fundamental right for the enforcement of which alone Article 32 of the Constitution is attracted. It appears that the facts of this nature require elaborate procedural investigation and this Court should not be moved and should not entertain on these averments of the Article 32 of the Constitution.

Summary

Issues:
1. Interpretation of Section 15(1)(b) of the Customs Act, 1962 regarding the determination of duty rates.
2. Application of fundamental rights under Article 32 of the Constitution in the context of customs duty payment.

Analysis:

Issue 1: Interpretation of Section 15(1)(b) of the Customs Act, 1962
The case involved a dispute regarding the determination of customs duty rates at the time of clearance of imported goods. The petitioner contended that due to prohibitory orders by the Income Tax Department, the goods could not be cleared promptly, leading to a delay in payment of duty. The petitioner argued that the duty should be determined based on the prevailing rates at the time of willingness to clear the goods, not at the actual removal date. However, the revenue authorities emphasized the phrase "actually removed" in Section 15(1)(b) of the Act, indicating that duty rates should be based on the date of physical removal of goods from the warehouse. Reference was made to a previous court decision supporting this interpretation, emphasizing the importance of adhering to the law's provisions for determining duty rates.

Issue 2: Application of Fundamental Rights under Article 32
The court addressed the petitioner's invocation of Article 32 of the Constitution, which guarantees the right to move the Supreme Court for the enforcement of fundamental rights. However, the court highlighted that the petitioner did not possess a fundamental right to clear imported goods without paying the requisite customs duties as per the law. The court emphasized that the determination of duty rates and compliance with customs regulations should follow the procedures outlined in the Customs Act, rather than seeking relief directly through Article 32. The court clarified that Article 32 should not be used to challenge valid orders or seek remedies that fall within the purview of statutory procedures like appeals or applications under Article 226. Citing precedent, the court reiterated that Article 32 is applicable only in cases involving the enforcement of fundamental rights and not for challenging legal orders or seeking relief outside the statutory framework.

In conclusion, the court held that the petitioner's application under Article 32 was not maintainable in this case. The court disposed of the writ petition while allowing the revenue authorities to take appropriate action for the recovery of dues in accordance with the law.