1987 (4) TMI 203 - AT - Customs

Summary

Issues:
1. Whether goods exempt from customs duty become chargeable if exemption is withdrawn?
2. Ignoring promissory estoppel in relation to a specific notification.
3. Applicability of customs duty on goods presented after exemption withdrawal.

Analysis:

Issue 1:
The first issue revolves around the leviability of customs duty on goods that were initially exempt but later had the exemption withdrawn. The advocate argued for a reference to the High Court under Section 130 of the Customs Act, contending that the basic duty was not initially leviable due to full exemption. However, the Tribunal clarified that all duties under the Customs Tariff Act are essentially customs duties, and there is no distinction between basic and non-basic duties. The Tribunal cited a Supreme Court decision and rejected the argument that the goods were not liable to customs duty at the time of importation.

Issue 2:
The second issue pertains to the principle of promissory estoppel concerning a specific notification dated 15.3.1979. The advocate contended that the Tribunal erred in ignoring this principle. However, the Tribunal emphasized that the leviability of customs duty is not dependent on the principle of promissory estoppel but on the provisions of the Customs Act. The Tribunal held that the question of promissory estoppel did not arise in the context of customs duty imposition.

Issue 3:
The final issue concerns goods for which bills of entry were presented after the withdrawal of exemption through a notification dated 16.10.1980. The applicants raised a question regarding the applicability of the earlier notification or the subsequent withdrawal letter. The Tribunal clarified that the exclusion clause of Section 130 of the Customs Act applied to the case, precluding a reference to the High Court. The Tribunal concluded that the questions raised by the applicants could only be decided by the High Court in its writ jurisdiction, not by the Tribunal.

In summary, the Tribunal rejected the reference applications, emphasizing that the questions raised did not warrant a reference to the High Court under Section 130 of the Customs Act. The Tribunal clarified the leviability of customs duty on exempted goods, the inapplicability of promissory estoppel in customs duty matters, and the jurisdictional limitations of the Tribunal in deciding certain questions that are within the purview of the High Court.