TMI Blog2011 (3) TMI 195X X X X Extracts X X X X X X X X Extracts X X X X ..... ia, shall be liable to an additional duty of customs at the rate of four per cent ad valorem - circular dated 14.9.2007 is prospective in nature - in the absence of anything being there in the earlier notification or any prevalent practice or any recognition, it is difficult to construe that what was implied earlier had become express by the later circular or it had become incumbent or necessitous to issue a circular - Decided in the favour of the assessee - W. P. (CIVIL) NO. 7538 OF 2007 - - - Dated:- 22-3-2011 - CORAM: HON'BLE THE CHIEF JUSTICE HON'BLE MR. JUSTICE SANJIV KHANNA Petitioner: Mr. Rajiv Nanda, Mr. Amit Jain, Ms. Rachna Saxena, Advs. Respondents: Mr. K.K. Ahuja, Adv. for R-1 2 Mr. A.S. Chandhiok, ASG ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the 1975 Act has been substituted w.e.f. 1.3.2005 vide Section 72 of the Finance Act, 2005 read with the declaration made under the Provisional Collection of Taxes Act, 1931 with Finance Bill, 2005. The new provision, as contended, enables the Government to impose an additional duty at a rate not exceeding 4% ad valorem to countervail the sales tax, value added tax, local taxes and other charges leviable on sale or purchase or transportation of like goods in India. The value for the purpose of the said levy would include the assessable value, basic custom duty and any sum chargeable as customs duty under Section 12 of the Customs Act, 1962 and any additional duty of custom leviable under sub-section (1) of Section 3A of 1975 Act. Various as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ircular dated 14.9.2007 is treated as retrospective or prospective. In this context, we may refer with profit to a three-Judge Bench decision rendered in Sri Vijayalakshmi Rice Mills, New Contractors Co. Ors. v. State of Andhra Pradesh, AIR 1976 SC 1471 wherein it has been laid down that it is a well settled recognized rule of interpretation that in the absence of express words or appropriate language from which retrospectivity may be inferred, a notification takes effect from the date it is issued and not from any prior date. 6. In the case of Collector of Central Excise v. Wood Craft Products Ltd., (1995) 3 SCC 454, the Apex Court had opined in the factual matrix therein that a particular expression, namely, similar laminated wood i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fied that notifications were rescinded and consolidated notification was issued on March 1, 1994 with a view to reduce number of notifications. No demand hence could have been made against the appellant in respect of parts of power driven pumps by issuing show cause notices. The submission of the appellant is well-founded that the Government was satisfied about the policy which was in vogue not to impose excise duty on parts of power driven pumps used in the factory promises for manufacture of power driven pumps and to clarify the position, the subsequent notification dated April 25, 1994 was issued. This is also clear if one reads at both the notifications Nos. 46/94, dated March 1, 1994 and 56/94, dated April 25, 1994 8. The present f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tral Government on being satisfied that it is necessary in the public interest so to do, and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 19/2005-Customs, dated the 1st March, 2005 [number G.S.R. 117(E), dated the 1st March, 2005], hereby directs that all goods specified under the Chapter, heading, sub-hearing or tariff item of the First Schedule to the said Act, having regard to the sales tax, value added tax, local tax and other taxes or charges leviable on sale or purchase or transportation of like goods in India, when imported into India, shall be liable to an additional duty of customs at the rate of four per cent ad valorem. 10. On a perusal of the same, it i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Notification No. 102/2007-Customs dated 14.9.2007. Clause 7.1 of the said Circular reads as follows: As regards the other doubt expressed by certain field formations on the effective date of the operation of refund scheme, it is stated that the said notification No.102/2007-Customs was issued on 14.9.2007. Accordingly, it is clarified that only those cases where 4% CVD was paid on or subsequent to 14.9.2007, will qualify for refunds under this scheme subject to fulfillment of prescribed conditions. 11. On a perusal of the language employed there, it is manifest that the said circular dated 14.9.2007 is prospective in nature. What is submitted by Mr.Nanda is that the circular dated 14.9.2007 has to be read regard being had to the earl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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