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TMI Blog1990 (4) TMI 155X X X X Extracts X X X X X X X X Extracts X X X X ..... er-in-Appeal dated 4th July, 1989. The latter order has given rise to the present Stay Petition and the connected appeal. 2. Shri S.K. Bagaria, learned Counsel for the applicants argued their case for stay before us. He submitted that the demand is on the grounds of increase in the rates of basic customs duty and levy of auxiliary duty which was fully exempt prior to 6-10-1986. He stated that the goods in question had been imported on 5-10-1986 itself as the vessel bringing the goods had arrived at the port of Calcutta and was granted berth at the port on 5-10-1986. On that day the duty rate was only 10% (Basic Customs duty) and nil rate for auxiliary duty as it was completely exempt. The rates were revised vide Notification dated 6-10-1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. Shri Bagaria also raised two additional and alternative pleas. One was that the alleged short levied duty was served on them beyond a period of six months and accordingly it was time-barred. He indicated that duty had been paid on 7-10-1986 and the notice was served on them only on 7-4-1987, as could be seen from the certificate issued by the postal authorities which was submitted by them with the appeal. The third point was in regard to auxiliary duty. This was completely exempted by a notification. The complete exemption from auxiliary duty was withdrawn on 6-10-1986 by a notification. As the goods were completely exempt when they were imported, viz. when the ship entered into the territorial waters of India and got berthed in the port ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng firm, they would be put to undue hardship if required to deposit the duty demanded. He, however, stressed the point that because of the strong prima facie case on their side the stay prayed for may be granted. He referred to the fact that in a number of decisions by the Tribunal Benches and different Courts it had been held that stay is to be granted where there is a strong prima facie case and the financial hardship question is not to be the deciding factor. 5. Shri M.N. Biswas, learned SDR strongly opposed the arguments of the learned Counsel. He stated that the notice had been despatched on 25-3-1987 itself well in time before the due date. Even if, as contended by the applicant the notice had been received by them on 7th April, 198 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... point that notifications would not come into operation with effect from the date shown in the Gazette or the date of the Gazette itself but the actual date when the copies of Gazette are made available to the public, Shri Biswas submitted that the exempting provisions are contained in Section 25 of the Customs Act and there is no mention therein about the date of publication thereof or date of release of Gazette for sale to the public as the date when the notification would come into effect. Actually when exemption notifications are issued by the Government, the Department extends the benefit of such exemption from the date of the notification itself and does not wait for the Gazette containing the notification to be released for sale to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g standing practice has to be weighed against the legal pronouncements of various High Courts and the Tribunal Benches. These are unanimously to the effect that notifications are effective only from the date when the copies of Gazette are released for sale to the public. In view of the same, we are satisfied that the applicants have a prima facie case in their favour. We accordingly grant the stay prayed for. As the appeal itself relates to rates of duty which is a matter concerning the Special Bench of the Tribunal, we direct that the appeal be transferred to Cegat, New Delhi for disposal by the concerned Special Bench. 8. Before parting with the matter, we would like to take note of the submission made by Shri Biswas about the loss to G ..... X X X X Extracts X X X X X X X X Extracts X X X X
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