1994 (10) TMI 72 - HC - Customs

Rate of duty, rate of exchange and tariff value (Customs) - Estoppel - Promissory estoppel - Writ jurisdiction

Summary

Issues Involved:
1. Rate of exchange for duty assessment.
2. Liability for additional or countervailing duty.
3. Validity of the Bill of Entry presentation date.
4. Applicability of promissory estoppel based on the Finance Minister's Budget speech.

Detailed Analysis:

1. Rate of Exchange for Duty Assessment:

The petitioner contended that the assessment should be at the rate of exchange prevailing on the date of presenting the Bill of Entry, i.e., 30-6-1994, and not the subsequent date of 1-7-1994. The court, upon examining Sections 14, 15, and 46 of the Customs Act, 1962, concluded that the presentation of the Bill of Entry in the prescribed form on 30-6-1994 should determine the applicable rate of exchange. The mere absence of the Importer's Code number did not disqualify the Bill of Entry as presented on 30-6-1994. Consequently, the application of the exchange rates prevailing on 1-7-1994 was deemed contrary to law and was set aside. The court held that the differential duty of Rs. 3,49,056/- due to the incorrect rate of exchange was unsustainable.

2. Liability for Additional or Countervailing Duty:

The petitioner argued that additional or countervailing duty was not leviable based on the Finance Minister's statement during the Budget speech. The court rejected this argument, emphasizing that a Finance Minister's speech is not law and cannot be the basis for claiming exemption. The court cited precedents where it was held that a Budget speech does not constitute law nor operate as estoppel. Therefore, the petitioner was liable for the additional or countervailing duty.

3. Validity of the Bill of Entry Presentation Date:

The respondents argued that the Bill of Entry was valid only when complete information, including the Importer Code number, was furnished on 1-7-1994. The court, however, held that the Bill of Entry presented on 30-6-1994 in the prescribed form was valid despite the omission of the Importer Code number. The court reasoned that the legislative intent was to consider the actual date of presentation rather than the date when complete information was provided. Thus, the Bill of Entry was deemed valid from 30-6-1994.

4. Applicability of Promissory Estoppel Based on the Finance Minister's Budget Speech:

The court dismissed the claim based on promissory estoppel, reiterating that a Finance Minister's Budget speech does not have the force of law. The court held that unless a statement made in the Budget speech is followed by proper legal implementation, no right can be claimed based on such a statement. The court upheld the view that the petitioner could not avoid liability for additional or countervailing duty based on the Finance Minister's speech alone.

Conclusion:

The writ petition was partly allowed concerning the levy of Rs. 3,49,056/- due to the incorrect application of the exchange rate as of 1-7-1994. In all other respects, including the liability for additional or countervailing duty and the validity of the Bill of Entry presentation date, the writ petition was dismissed.