TMI Blog2016 (7) TMI 1063X X X X Extracts X X X X X X X X Extracts X X X X ..... speech only highlights the more important proposals of the budget. Those are not the enactments by the Parliament. The law as enacted is what is contained in the Finance Act. After it is legislated upon by the Parliament and a rate of duty that is prescribed in relation to a particular Tariff Head that constitutes the authoritative expression of the legislative will of Parliament. Now in the present facts of the case, as per the finance bill, the legislative will of the Parliament is that for the commodities falling under Tariff Head 2208.10, the tariff is ₹ 300/- per litre or 400% whichever is higher. Even assuming that the amount of tax is excessive, in the matters of taxation laws, the Court permits greater latitude to the discretion of the legislature and it is not amenable to judicial review. According to the appellant, the Central Government has issued notifications under Section 25(1) and he is also entitled to such a notification in respect of the commodities falling under the category 2208.10. When the appellant alleges discriminatory action on the part of the respondents, he has to establish that there is no rational basis for making classification between th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er than that was authorized in the Budget Proposals during financial years 1993-94 and 1994-95. The appellant took recourse to the provisions of the Right to Information Act in order to procure relevant information from the concerned authorities. According to the appellant, the authorities have not furnished the relevant information. 3. Not satisfied with the attitude of the authorities, the appellant preferred a Writ Petition before the High Court seeking the following reliefs: (a) a writ of Mandamus directing the first and second respondents herein to issue a notification u/s.25(1) of the Customs Act, 1962 (for short the Act ) in order to exempt goods falling under Tariff Sub-Heading 2208.10 so as to give effect to the Budget proposal announced by the Finance Minister (FM) in Parliament for financial years l993-94 and 1994-95; (b) a direction to the Chief Commissioner of Customs to finalize assessment of the eight bills of entry after a notification is issued by the first and second respondents u/s.25(1) of the Act; (c) a writ of Mandamus directing the second respondent to issue a notification u/s.25(2) of the Act for granting exemption from customs duty for goods falling und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r power to alter or amend the same. If the executives are allowed to prescribe any tariff rates contrary to the Budget Proposals duly authorized by the Parliament, then the Budget Proposals duly passed by the Parliament will have no meaning and will be rendered nugatory and thus opening the flood gates for corrupt practice . 8. He also submits that the goods falling under sub-heading 2208.10 of the Customs Tariff Act are not alcoholic beverages but Compound alcoholic preparations of a kind used for the manufacture of beverages falling under sub-heading 2208.10 in the Customs Tariff Act 1993-94 and 1994-95, not being alcoholic beverages and not being covered by the exceptions mentioned in the said proposal at Sl.No. B1, the rate of duty duly passed and legislated by the Parliament should have been prescribed as 85% for the year 1993-94 and as 65% for the year 1994-95. The statutory term Compound alcoholic preparations of a kind used for the manufacture of beverages clearly explains that it covers compound alcoholic preparations for the manufacture of beverages and that it is a product that precedes the consumable alcoholic beverage and hence it cannot, by any stretch o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tended for immediate consumption and are not alcoholic beverages and are classifiable under sub-heading 2208.10 of Customs Tariff . 11. He would further submit that the TRU department has issued notifications for all other erroneous tariff rates prescribed by them in the Customs Tariff Act, Finance Bill and Finance Act 1993-94 and 1994-95 to give effect to the Budget proposals duly passed and legislated by the Parliament and the respondents cannot discriminate in the case of the appellant and refuse to issue notifications. 12. He further submits that he is seeking a suitable notification prescribing Customs Tariff of 85% and 65% on goods falling under sub-heading 2208.10 to give effect to the budget proposals at Sl.No.B 1 duly passed and legislated by the Parliament for the years 1993-94 and 1994-95 since collection of tax without authority of law is in violation of Article 265 of the Constitution and violation of the appellant s right to property under Article 300 A of the Constitution and return of the excess amount of ₹ 5,62,46,722/- (Rupees Five core sixty two lakhs forty six thousand seven hundred and twenty two only) collected from him at the time of provisional ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bill. According to him, the High Court has rightly held that the appellant did not dispute the fact that the goods imported by him fell within Tariff Heading 2208.10 and the position under the Finance Act of 1993 was that the rate of duty prescribed for Tariff sub-heading 2208.10 was ₹ 300/- per liter or 400% whichever is higher and the High Court thus rightly held that budget proposals and the speech of the Finance Minister in Parliament may or may not accept the proposal as held in B.K. Industries V. Union of India reported in (1993) 65 ELT 465 (SC) and once Parliament has duly legislated, and a rate of duty is prescribed in relation to a particular tariff heading that constitutes the authorities expression of the legislative will of Parliament; the speech of the Finance Minister and the financial/budget proposals duly passed by Parliament are two separate and distinct documents; the law as enacted is what is contained in the Finance Act after it is legislated upon by the Parliament. Budgetary proposals constitute legislative material antecedent to the enactment of law. The rates of tax are those which are prescribed by legislation, once it is enacted by Parliament. It is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was known as concentrated extracts . Compound Alcoholic Preparations are used in the manufacture of various beverages and are not for immediate consumption. The claim of the appellant-importer that duty should have been imposed at the rate of 85% for 1993-94 and 65% in 1994-95 and the claim that he had paid excess duty of ₹ 5,62,46,726/- cannot be sustained since all these consignments were assessed provisionally and the goods were classified under Chapter Tariff Heading No.2208.10 of the First Schedule to the then Custom Tariff and accordingly, the goods were assessed provisionally and cleared on payment of appropriate duties. 20. According to him, the further contention of the appellant-importer that exclusion in peak rate covers alcohol beverages but his imported goods are compound alcoholic preparation of a kind used for manufacturing of beverages which is not alcohol beverage and, therefore, not hit by the exclusion clause, cannot also be sustained. 21. According to him, the contention of the importer that during the impugned period, the peak rate of duty was 150% as announced by the FM in his Budget Speech also cannot be sustained because the proposed rate of m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to refund after assessments are finalized and (5) an order for the payment of interest at the rate of 12% p.a. on the refund that is ordered. 25. The High Court of Bombay, after giving a thorough consideration, dismissed the writ petition on the ground that once a particular Tariff Heading is prescribed, that constitutes the authoritative expression of the legislative will of Parliament and the High Court cannot exercise its power of judicial review and go beyond the law enacted by the Parliament and it is not permissible for the Court to undertake a scrutiny of whether there was an error on the part of the Parliament in legislating a particular rate of duty. Further, the High Court observed that there is no discriminatory conduct which would compel the interference of the court. The appellant, unsatisfied with the order, has preferred a revision before the High Court which ended up in dismissal as no error apparent on record has been made out. 26. In those circumstances, the appellant is before us by way of these appeals; one arising out of the original order and one against the order passed in review. Before this Court, the appellant has amended the reliefs and sought fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther there is any discrimination on the part of the Central Government in issuing a notification under Section 25(1) of the Customs Act in respect of other goods and contrary to Article 14 of the Constitution of India? 31. In Re Issue No.1: The whole thrust of the appellant is that the proposals of the Finance Minister were duly approved by the Parliament. No doubt, the appellant has placed before this Court the proposals of the Finance Minister which discloses the intention of the Government but there is no material placed before us to demonstrate that the budget proposals are duly accepted by the Parliament. It is an admitted fact that pursuant to the proposals, the Finance Act was passed by the Parliament wherein for the goods specified under Tariff Sub-Heading 2208.10, particular tariff was specified. We are unable to agree with the argument advanced by the appellant for the reason that he is unable to make note of the difference between a proposal moved before the Parliament and a statutory provision enacted by the Parliament, because the process of Taxation involves various considerations and criteria. Every legislation is done with the object of public good as said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 25 of the Customs Act, 1962, which reads as under: Power to grant exemption from duty. (1) If the Central Government is satisfied that it is necessary in the public interest so to do, it may, by notification in the Official Gazette, exempt generally either absolutely or subject to such conditions (to be fulfilled before or after clearance) as may be specified in the notification goods of any specified description from the whole or any part of duty of customs leviable thereon. (2) If the Central Government is satisfied that it is necessary in the public interest so to do, it may, by special order in each case exempt from the payment of duty, under circumstances of an exceptional nature to be stated in such order, any goods on which duty is leviable. Section 25 of the Act delegates power to the Central Government i.e. the executive branch to grant exemption generally from duty whenever it finds that it is necessary to do so in the larger public interest either absolutely or subject to such conditions as may be specified in the notification or by a special order in each case under exceptional circumstances. As per Section 159 of the Act, any notification ..... X X X X Extracts X X X X X X X X Extracts X X X X
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