Court rules duty rate based on entry date, orders refund of excess duty paid by petitioner.

The court ruled in favor of the petitioner, a sole proprietary firm challenging the increased import duty on PVC Resin. The court held that the duty rate applicable should be based on the date of the vessel's entry inwards, which was determined to be October 18, 1982. The court directed the refund of the excess duty paid by the petitioner within eight weeks, with the possibility of interest at 15% per annum if not refunded timely. No costs were awarded in the judgment.

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Issues:
1. Challenge to increased import duty on PVC Resin.
2. Interpretation of Customs Act regarding the date for determining the rate of duty.
3. Discrepancy regarding the date of entry inwards of the vessel.

Detailed Analysis:
1. The petitioner, a sole proprietary firm, had contracted to import PVC Resin from South Korea. The vessel carrying the goods arrived in India on October 11, 1982. Subsequently, the import duty on PVC Resin was raised from 100% to 150% on November 5, 1982. The petitioner challenged this duty increase under Article 226 of the Constitution of India.

2. The petitioner argued that as per Section 15 of the Customs Act, the rate of duty applicable to imported goods is determined based on the date the bill of entry is presented. In this case, the bill of entry was presented on October 11, 1982. However, a proviso in the Act stated that if the bill of entry is presented before the vessel's entry inwards, it is deemed presented on the entry date. The petitioner contended that since the vessel's entry inwards was on October 18, 1982, the duty rate effective on that date should apply.

3. The respondents, represented by an affidavit-in-reply, denied the vessel's entry inwards on October 18, 1982. However, no concrete evidence or reasoning was provided to refute the petitioner's claim. The petitioner presented a newspaper issue dated November 2, 1982, confirming the vessel's presence for import discharge before the duty increase on November 5, 1982. The court found in favor of the petitioner, ruling that the duty rate in force on October 18, 1982, should apply. The court allowed the petition, directing the refund of the excess duty paid by the petitioner within eight weeks, failing which interest at 15% per annum would be payable by the respondents. No costs were awarded in the judgment.

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