Bombay High Court Quashes Notification on Customs Duty from Sri Lanka

The Division Bench of the Bombay High Court ruled in favor of the petitioner in the challenge against a Notification imposing restrictions on customs duty for goods imported from Sri Lanka. The Court held that the notification did not serve the intended purpose of preventing misuse of concessions and was not issued in public interest as it opposed the law and treaty provisions. The Court made the Rule absolute in favor of the petitioner based on the reasoning of the Bombay High Court and did not award any costs in the matter.

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Issues involved: Challenge to a Notification dated 19.3.2008 imposing restrictions on customs duty for goods imported from Sri Lanka, alleged contravention of Article 14 and 19(1)(g) of the Constitution of India.

Details of the Judgment:

Challenge to Notification: The petitioner challenged a Notification dated 19.3.2008 which restricted the import of goods from Sri Lanka to only Calcutta port, requiring payment of basic customs duties if imported through other ports. The Bombay High Court had previously quashed a similar notification, stating that the amendment must be in public interest and lawful. The Division Bench of the Bombay High Court rejected the justification for the notification, emphasizing that the restriction to Kolkata port did not serve the intended purpose of preventing misuse of the concession. The Court found that the object of the notification was to deny the benefit of statutory concession under the Customs Tariff Act, which was not a legitimate objective. The Court held that the notification was not issued in public interest as it opposed the law and the India-Sri Lanka Treaty provisions.

Decision: The Court ruled in favor of the petitioner, making the Rule absolute in terms of the prayer clause (a) and allowed the Writ Petition based on the judgment and reasoning of the Bombay High Court dated 20.10.2008. No costs were awarded in the matter.

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