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TMI Blog2009 (8) TMI 1218X X X X Extracts X X X X X X X X Extracts X X X X ..... for grant of licence to import capital goods on January, 1999. It was approved by the EPCG committee by a communication dated February 18, 1999. 4. Before the aforesaid company availed of the benefit of 10% duty of customs scheme in April, 1999, the government had introduced a 0% duty of customs scheme with effect from April 1, 1999. The benefit of the above scheme was made available for the period from April 1, 1999 to March 31, 2000. But no notification was issued to that effect in exercise of powers conferred by sub-section (1) of Section 25 of the Customs Act, 1962. 5. The above company approached the respondent authority for granting licence to import capital goods to avail of 0% of customs duty. Such prayer was not granted by the respondent authority. However, 10% EPCG licence was granted in favour of the above company. Consequent upon the merger of the above company with Ruia Cotex Ltd. Anr., the petitioner company approached the respondent authority to pass an order in its favour assuring that licence would be deemed to have been issued under 0% duty of customs scheme for the purpose of refunding payment of 10% customs duty to the petitioner-company after publicati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs. v. Indian Tobacco Association reported in (2005) 7 SCC 396 = 2005 (187) E.L.T. 162 (S.C.), the learned senior counsel submits that the term substitution was interpreted in the above decision. In view of the above interpretation, the impugned order dated July 30, 2003 cannot be sustained in law. 9. Opposing the above submissions made on behalf of the petitioners, it is submitted by Mr. Malay Kumar Singh, on behalf of the respondents, that in accordance with the provisions of Section 25 of the Customs Act, 1962, the Central Government may exempt goods of any specified description from payment of customs duty. But according to the above provisions such exemption takes effect from the date of publication of the notification in the Official Gazette. Admittedly, in this case the import of machineries under reference took place prior to the date of publication of such notification in the Official Gazette extending the benefit of 0% duty of customs under EPCG Scheme. Therefore, the impugned order is sustainable in law. 10. I have heard the learned Counsel appearing for the respective parties and I have also taken into consideration the facts and circumstances of this case. It i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 29/97-Customs, dated the 1st April, 1997, namely :- In the said notification - (i) .... (ii) in paragraph 2, (A) for second proviso to condition (2), the following proviso shall be substituted, namely :- Provided further that in case of a licence of CIF value of Rupees one crore or more but less than rupees twenty crores, where the licence is issued - (a) with an obligation to export products of electronics, food processing, garments, leather, sport goods, gem and jewellery, agriculture, animal husbandry, floriculture, horticulture, pisciculture, viticulture, poultry, sericulture, bio-tech and engineering sector, or. 13. There was a further Notification No. 122/99-Cus., dated November 4, 1999 and the relevant portions of the aforesaid notification are quoted below : Capital goods, components and spares thereof imported under EPCG Scheme - Amendment to Notification No. 29/97-Cus. In exercise of the powers conferred by sub-section (1) of Section 25 of Customs Act, 1962 (52 of 1962), the Central Government, being satisfied that it is necessar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r . What is the meaning and effect of the expression employed therein - shall be substituted ? 24. The substitution of one text for the other pre-existing text is one of the known and well-recognised practices employed in legislative drafting. Substitution has to be distinguished from supersession or a mere repeal of an existing provision. 25. Substitution of a provision results in repeal of the earlier provision and its replacement by the new provision (see principles of Statutory Interpretation, ibid., p. 565). If any authority is needed in support of the proposition, it is to be found in West U.P. Sugar Mills Assn. v. State of U.P., State of Rajasthan v. Mangilal Pindwal, Koteswar Vittal Kamth v. K. Rangappa Baliga and Co. and A.L.V.R.S.T. Veerappa Chttiar v. S. Michael. In West U.P. Sugar Mills Assn. case a three-Judge Bench of this Court held that the State Government by substituting the new rule in place of the old one never intended to keep alive the old rule. Having regard to the totality of the circumstances centring around the issue the Court held that the substitution had the effect of just deleting the old rule and making the new rule operative. In Mangilal P ..... X X X X Extracts X X X X X X X X Extracts X X X X
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