9911796707
TMI Blog1990 (12) TMI 195X X X X Extracts X X X X X X X X Extracts X X X X ..... red exporters participate in the auction and purchase coffee for export. The terms and conditions of the auction-sale are fixed by the Board. The auction on account of which the dispute involved in these appeals arose was held on 18th May, 1977. The dispute relates to the interpretation of Clause 10 of the terms and conditions of the said auction. The Clause reads as follows : "10. Tender of Bids. - The Bid tendered shall be exclusive of Sales Tax, Central Excise Duty, Customs duties, Octroi duty and every other imposts and shall be on the basis of delivery of coffee ex-bags, excuring works. However, should there be any change in the rates, taxes, duties and imposts mentioned above between the date of auction at which the exporter purchas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te of auction. (b) 75 per cent of the reduction in the rates of any or all of such taxes, duties and imposts on coffees attracting such reduced rates of levies and shipped beyond a period of 30 days from the date of auction. The additional sums that may become payable by the exporter to the Board as a consequence of such reduction in the rates of taxes, duties and other imposts shall be paid within seven days from the date of shipment." 2. Before we proceed further, it is necessary to note two facts. The first is, as has been stated clearly in the above clause, that the period of 45 days is to be calculated from the date of the auction inclusive of that date. Secondly, the provision in the clause for sharing the excess or reduction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unt of reduced duty in terms of the aforesaid clause 10. All the exporters including the present appellants refunded 50% of the reduction in the duty. However, thereafter the appellants wrote to the Board asking for the return of the amount so paid contending that there was already a reduction in duty on the date of the auction, namely, on 18th May, 1977 and, therefore, it cannot be said that there was reduction in duty within 45 days from the date of the auction. The Board pointed out that the reduction in duty was effected on 18th May, 1977 by the authorities at Delhi and, admittedly, neither the Board nor the auction purchasers were aware of the said reduction at the time the auction was held on that day. The Board also stated that the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earned counsel appearing for the respondent Board raised a preliminary contention that in the first instance the contract out of which the present dispute arises was not statutory. Even if it was statutory the dispute related to a purely commercial contract and no writ could lie to enforce either the terms of such contract or the claims arising out of it. The High Court had given clear finding on the said point and hence, the present appeal should be dismissed on that ground alone. Shri Shanti Bhushan, the learned counsel, appearing for the appellants submitted that assuming that the finding of the High Court was correct on that point, since the learned single Judge as well as the Division Bench had also decided the matter on merits, the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hould be held that the rate of duty, namely, Rs. 1600/- per quintal was in operation at the time the auction was held on the 18th May, 1977. There was, therefore, no change in duty at the time of the auction or any time within 45 days thereafter. This contention though apparently attractive ignores the very vital provisions in the said clause 10, namely, that the period of 45 days includes the day of the auction as well. Hence, an increase or reduction in duty made on the day of auction is also sharable between the parties. The purpose of including the day of auction in the period of 45 days, contrary to the manner of computation of time in the General Clauses Act, is obvious and is brought home more prominently by the present instance itse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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