1991 (10) TMI 62 - HC - Customs

Effective Date of Customs Act Exemption Notification Decided

The court held that the effective date of an exemption notification under Section 25 of the Customs Act, 1962, is the date on which it is made available ... Exemption Notification - Customs - Withdrawal of Issues Involved:1. Effective date of exemption notification under Section 25 of the Customs Act, 1962.Detailed Analysis:1. Effective Date of Exemption Notification:The core issue in this writ petition is whether the exemption notification issued under Section 25 of the Customs Act, 1962, takes effect from the date of its publication in the Official Gazette or from the date it is made available to the general public. Sub-section (1) of Section 25 of the Act states: '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.'The petitioner, a public limited company, imported aluminium slugs with 99.7% purity. The vessel carrying the goods arrived at Bombay Port on 31 July 1982 but due to congestion, berthed only on 13 August 1982. The petitioner filed its Bill of Entry on the same day. The contention is that the duty exemption under Notifications No. 182/82 and No. 189/82, issued on 31 July 1982, was illegally withdrawn as the goods were imported before the withdrawal date. The impugned notifications were published in the Gazette of India on 31 July 1982 but made available for sale on 20 August 1982. The petitioner argues that the exemption notification was still in operation on 13 August 1982, entitling them to a lower duty rate.The respondents argue that the exemption notifications were withdrawn on 31 July 1982, making the standard duty rate applicable. The court, after hearing the parties, issued an interim order allowing the petitioner to clear the goods at the pre-amendment duty rates upon furnishing a bond and bank guarantee.The court examined the language of Section 25 and the meaning of 'notification' and 'publication.' It concluded that the notification must be made available to the public to be effective. The court referred to the definitions of 'publish' and 'notification' from various dictionaries and legal glossaries, emphasizing that the information must be made known to the public.The court also reviewed the history and authority behind the publication of the Official Gazette, noting that it is an official government journal containing public notices. The Gazette is published under a resolution of the Governor-General of India in Council, and various instructions govern its printing and distribution.The court found that the date on which the Gazette is made available to the public is relevant, not the date printed on it. The principle 'ignorance of law is no excuse' cannot be invoked unless the law is made public. The court supported its view with decisions from the Madras High Court and the Supreme Court, which held that the effect of an exemption notification is from the date it is made known to the public.Under Section 81 of the Indian Evidence Act, 1872, the court presumes the genuineness of documents in the Official Gazette, but this presumption is rebuttable. In this case, it was shown that the Gazette was made available after the printed date.The court concluded that the exemption notifications would apply in the present case, discharging the bond furnished by the petitioner. The rule was made absolute with no order as to costs.Conclusion:The court held that the effective date of an exemption notification under Section 25 of the Customs Act, 1962, is the date on which it is made available to the public, not the date it is printed in the Official Gazette. The petition was allowed, and the bond furnished by the petitioner was discharged.