Customs duty hike on bulk crude vegetable oil imports u/s25 notification: refund order challenged, notice issued pending review

Challenge concerned the validity and effective date of a Customs notification issued under s.25 Customs Act, 1962, enhancing duty on bulk imports of crude vegetable oils used for manufacturing food products, and the consequent entitlement to refund of excess duty paid under protest, including IGST. The HC held that the enhanced levy was not sustainable for the relevant period and directed the Customs authorities to refund the entire excess duty/IGST collected under protest within two months. In appeal, the SC found the challenge to the HC's determination to raise an arguable issue and issued notice, thereby keeping the HC's ruling under scrutiny without finally adjudicating the merits.

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The Supreme Court passed an order in a proceeding initiated by way of a special leave petition. The Court directed: "Issue notice." The matter was also procedurally linked with a pending connected case, ordering that it be "Tag[ged] with S.L.P. (C) Diary No. 26479 of 2020 [Union of India v. M/s. Ruchi Soya Industries Ltd.]." The order reflects an initial stage of appellate scrutiny under Article 136, where issuance of notice signifies that the Court found it appropriate to call upon the respondent(s) to respond, and tagging indicates that the questions raised are sufficiently related to another pending special leave petition to warrant being heard together for consistency and judicial economy.

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