TMI Blog1985 (8) TMI 81X X X X Extracts X X X X X X X X Extracts X X X X ..... customs duty of 100% plus auxiliary duty as also an additional duty under Section 3 of the Customs Tariff Act, 1975 read with Chapter 15A of the Central Excise, were leviable on the said goods. 4. The Appellant No. 1 contended that under Notification No. 228/76-Cus., dated the 2nd August, 1976 as amended by Notification No. 443/76-Cus., dated the 29th November, 1976 the goods were exempt from the additional duty under the Customs Tariff Act, 1975 and sought to clear the goods on payment of customs duty only. The contentions of the Appellant No. 1 were not accepted by the Customs Authorities. 5. On the 12th April, 1980 the Appellant No. 1 and Sriniwas Rastagir, the Financial Controller and the constituted Attorney of the Appellant No. 1, the Appellant No. 2, moved this court under Article 226 of the Constitution against the Union of India, the Collector of Customs and the Assistant Collector of Customs, Group II, Calcutta, who were impleaded as the Respondents to the application. They are also the Respondents before us in this appeal. 6. On the 3rd May, 1983, a Rule nisi was issued on the writ application calling upon the Respondents to show cause why appropriate writs should ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts at the hearing of the application and the same was dismissed with costs on the 11th January, 1985. 12. On the 5th February, 1985 the appellants made a farther application in the writ proceedings praying, inter alia, for a similar order as prayed for in the earlier application that the Customs Authorities be directed to issue a wharf rent exemption certificate on the ground of special examination of the said goods from the 11th November, 1982 till the actual date of delivery. The said application was opposed both by the Customs and the Port Authorities. 13. The said application was heard along with the main Rule and were disposed of by a judgment and order dated the 9th May, 1985. The Rule was discharged and the interim order passed on the 3rd May, 1983 was vacated. The present appeal is from the said judgment and order. 14. At the instance of the parties the appeal has been heard along with application made therein. By consent filing of paper book was dispensed with and the undertaking given on that behalf by the appellants was directed to stand discharged. The pleadings and records before the first court were placed at the hearing of the appeal and were considered. 15. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 88/85-Cus., dated the 17th March, 1985. The appellants not having cleared the goods earlier and having kept the same under a Bill of Entry for warehousing are bound to pay the duty as currently prevailing. 20. In support of his contentions learned Counsel for the Customs drew our attention to the following sections of Customs Act, 1962 the relevant portions whereof are quoted hereafter. Customs Act, 1962: Section 15 ; (1) The rate of duty and tariff valuation, if any, applicable to any imported goods, shall be the rate and valuation in force :- (a) in the case of goods, entered for home consumption under Section 46, on the date on which a Bill of Entry in respect of such goods is prescribed under that section; (b) in the case of goods cleared from a consumption under Section 46 [on the date on which a Bill of Entry in respect of such goods is prescribed under that section,] warehouse under Section 68, on the date on which the goods are actually removed from the warehouse; (c) in the case of any other goods, on the date of payment of duty. Section 45 : (1) Save as otherwise provided in any law for the time being in force, all imported goods unloaded in a Custom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... leviable under sub-section (1) or not] such additional duty as would counter balance the excise duty leviable or any raw materials, components and ingredients of the same nature as, or similar to those used in the production or manufacture of such article, it may by notification in the official Gazette, direct that such imported articles shall in addition, be liable to an additional duty representing such portion of the excise duty leviable on such raw materials, components and ingredients as, in either case, may be determined by rules made by the Central Government in this behalf ........ (5) The duty chargeable under this Section shall be addition to any other duty imposed under the Act or under any other law for the time being in force. (6) The provisions of the Customs Act, 1962, and the rules and regulations made thereunder, including those relating to drawbacks, refunds and exemption from duties, shall, so far as may be, apply to the duty chargeable under this section as they apply in relation to the duties leviable under that Act. ... Section 25 of the Customs Act, 1962 provides inter alia as follows : "25. Power to grant exemption from duty. (1) If the Central Governm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er film is admittedly an article made of plastics. 25. Under the said Notification No. 228-Cus., dated the 2nd August, 1976 as it stood amended at the relevant time all articles made of plastics excluding the items specified therein, stood exempted from payment of any additional duty under Section 3 of the Customs Tariff Act. The exempted articles specified under the said notification does not include plastic films and on a plain reading of the said notification plastic films are exempted from payment of additional duty. 26. In this context it is to be considered whether the expression 'sheet' is wide enough to cover plastic films. We have already noted the contentions of the appellants on this aspect earlier. In IS:2828-1964, the following definitions are stated :- . "Sheet - A piece of plastic sheeting produced as an individual piece rather than in a continuous length or cast as an individual piece from a continuous length". "Film - A sheeting having nominal thickness not greater than 0.25 mm". Both in the Customs Tariff Act, 1975 and the Central Excises and Salt Act, 1944 and the notifications issued thereunder plastic sheets and plastic films had been at the material ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dated the 2nd August, 1976 relied on by the appellants were not been expressly rescinded nor revoked by any other notification and read by itself exempt levy of additional duty on plastic films. 36. It might have been intended that plastic films should also be subjected to additional or countervailing duty but that intention was lost sight of when the said Notification No. 228-Cus., dated 2nd August, 1976 was issued. Even assuming that such was the intention the lacuna left in the notifications cannot be cured or filled up by the court. 37. Law is well-settled that a taxing statute has to be construed literally. A tax cannot be imposed on legislative intent alone. Strict application of a taxing statute even if leads to an unjust or absurd results has to be upheld. See Commissioner of Income-tax v. Shahzada Nand Sons reported in AIR 1966 SC 1342; Janahada Sabha Chhindwara v. Central Province Syndicate Ltd., reported in AIR 1971 SC 37; Yeshwani v. Commissioner of Wealth Tax, reported in AIR SC 135; Rao Ghorpade, Commissioner of Income-tax v. Vegetable Products Ltd., reported in AIR 1973 SC 927; Commissioner of Income tax v. Vadilal Lallabhi reported in AIR 1973 SC 1076 and St ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
