Tariff classification and unlawful customs recovery led to refund of excess duty with interest.

Proper tariff classification of the imported cable impregnating compound was examined to determine whether the assessment under Tariff Item 38.01/19(1) was without jurisdiction and contrary to law. The court followed its earlier decision on the same product and applied the principle that customs duty realised without authority of law may be refunded in writ jurisdiction. On that basis, the excess duty collection was treated as unlawful, and refund of the excess amount with interest was directed in favour of the importer.

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Issues: Whether the impugned assessment of the imported cable impregnating compound under Tariff Item No. 38.01/19(1) of the Customs Tariff Act, 1975 was without jurisdiction and contrary to law, and whether the excess customs duty realised was refundable under Article 226 of the Constitution of India.

Analysis: The writ petition raised the question of proper tariff classification of the imported compound and the consequential legality of the duty collected. The Court followed its earlier decision on the same product and applied the principle that amounts realised without authority of law may be ordered to be refunded in exercise of writ jurisdiction.

Conclusion: The assessment and collection of excess duty were treated as unlawful, and refund of the excess amount with interest was directed in favour of the petitioner.

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