1994 (3) TMI 96 - HC - Customs

Summary

Issues:
1. Interpretation of exemption notification under Section 25 of the Customs Act.
2. Validity of the Assistant Collector's decision regarding short levy notices.
3. Allegation of withdrawal of exemption not in public interest.
4. Timing of import and filing of bills of entries in relation to notification withdrawal.

Analysis:

1. The judgment dealt with the interpretation of an exemption notification issued under Section 25 of the Customs Act. The petitioners imported goods based on an exemption notification dated March 6, 1979, but a subsequent notification on August 10, 1984, modified the exemptions. The court held that once a notification is published in the official Gazette, it is deemed to be known to all, and lack of awareness by importers does not invalidate the notification.

2. The Assistant Collector of Customs issued short levy notices to the petitioners, demanding duty payment due to the withdrawal of exemption. The petitioners challenged this decision, arguing that they were unaware of the new notification. However, the court upheld the Assistant Collector's decision, stating that the duty was correctly demanded based on the modified notification.

3. The petitioners alleged that the withdrawal of exemption was not in the public interest but favored certain individuals. The court ruled that unless there is substantial evidence to show that the exercise of power was not bona fide, the presumption is that the government's actions are in the public interest. Mere allegations without foundation are insufficient to challenge the government's decision.

4. There was a discrepancy regarding the timing of import and filing of bills of entries concerning the notification withdrawal date. The petitioners claimed the bills were filed before the notification, but the court noted conflicting information in the petition, ultimately dismissing this argument. The judgment discharged the rule with costs and allowed the enforcement of a bank guarantee to recover the short levied amount with interest.

In conclusion, the court upheld the Assistant Collector's decision on short levy notices, emphasized the importance of publication of notifications for all concerned parties, and dismissed the petitioners' claims of exemption withdrawal not being in public interest.