Court grants Petitioners benefit under specific notifications, rejects selective application, directs prompt processing.

The court held that the Petitioners are entitled to the benefit of Notification No. 12/99 if they meet the conditions of Notification No. 71/87 and imported Autoconers within the specified period. The Respondents failed to justify the selective application of the exemption to only 11 textile mills, leading to the court's decision in favor of the Petitioners. The Petitioners were directed to apply for the benefit within four weeks, with the Respondents required to process the application promptly. If eligible, the Petitioners must pay the applicable duties and maintain a bank guarantee until the finalization of the application and an additional eight weeks thereafter. No costs were awarded in this case.

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Issues:
Whether the 'Autoconers' imported by the Petitioners can be denied benefit of exemption Notification No. 71/87, dated 1st March, 1987 as amended from time to time.

Analysis:
In the group of petitions, the main issue raised is whether the Autoconers imported by the Petitioners are eligible for the benefit of exemption under Notification No. 71/87. The said notification provided partial exemption from basic customs duty and total exemption from payment of additional duty for Autoconers. The dispute revolves around the availability of this exemption to the Autoconers imported by the Petitioners. At the relevant time, Notification No. 71/87 exempted Autoconers from paying basic Customs Duty exceeding 35%, with total exemption from additional duty. Subsequent amendments and notifications altered these exemptions. Notably, Notification No. 12/99 extended the benefit of the earlier notification to certain textile mills for a specific period, even when the original notification was not in force.

It is acknowledged that the Central Government, under its powers, issued Notification No. 12/99, granting specific textile mills exemption from basic customs duty and additional duty in line with Notification No. 71/87 for Autoconers imported during a particular period. The court observed that if the government extended this benefit to certain mills for the mentioned period, there should be no reason to deny the same benefit to other importers, including the Petitioners, who imported Autoconers during the same timeframe. The Respondents failed to provide valid reasons for this discrepancy. The Respondents' counsel admitted the difficulty in justifying the selective application of the exemption to only 11 textile mills.

Consequently, the court held that the Petitioners should not be deprived of the benefit of Notification No. 12/99 if they fulfilled the conditions outlined in Notification No. 71/87 and had imported Autoconers between the specified dates. The court directed the Petitioners to apply to the Respondents for the benefit within four weeks, with the Respondents required to process the application promptly, ideally within eight weeks. If deemed eligible, the Petitioners must pay the applicable duties. The court also instructed the Petitioners to maintain any bank guarantee until the application's finalization and an additional eight weeks thereafter.

In conclusion, the petition was disposed of with the mentioned directions, emphasizing that no costs were awarded considering the circumstances of the case.

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