1987 (11) TMI 202 - AT - Customs

Customs Tribunal Upholds Duty Rate on Imported Fiber

The Tribunal upheld the enhanced duty rate imposed by Customs Notification No. 208/79 on imported viscose staple fiber, dismissing the appeal against the ... Promissory Estoppel Issues:Interpretation of customs notifications for concessional assessment rate and subsequent amendment leading to enhanced duty rate, applicability of promissory estoppel in statutory notifications, legislative nature of delegated executive authority in issuing notifications, determination of applicable duty rate based on the date of filing bill of entry, relevance of case law in interpreting statutory notifications.Analysis:The case involved an appeal against an order confirming the enhanced duty rate imposed by a customs notification on the import of viscose staple fiber. The appellants imported goods for yarn manufacturing and claimed a concessional assessment rate under Notification No. 8 dated 5-1-1979. However, Customs Notification No. 208/79 dated 30th October 1979 demanded a higher duty rate, leading to the dispute.The appellant's counsel argued that the subsequent amendment to the notification, increasing the duty rate and extending the period, violated the principles of promissory estoppel. They contended that the amendment adversely affected the appellants and should not be legally binding. The counsel emphasized the distinction between legislative exercise by the legislature and delegated legislation by a subordinate authority, asserting that the latter should not deprive the appellants of the benefits of promissory estoppel.On the other hand, the respondent's representative argued that the amended notification was valid under the Customs Act 1962 and should govern the imported goods. They asserted that the statutory power exercised through the notification was legislative in nature, precluding the application of promissory estoppel. The respondent cited legal precedents supporting their position, including rulings from the Andhra Pradesh High Court and the Delhi High Court.The Tribunal considered the factual timeline of the notifications and the importation process. It was noted that the goods were shipped before the amendment but the bill of entry was filed after the enhanced duty rate notification came into force. The Tribunal rejected the appellant's argument regarding the applicability of promissory estoppel in statutory notifications, citing Supreme Court rulings that emphasized the limitations of such doctrines against legislative functions.The Tribunal relied on the statutory provisions of the Customs Act and precedent cases, including a full Bench ruling of the Bombay High Court, to determine that the duty rate applicable at the time of filing the bill of entry should govern the assessment. Based on the evidence and legal analysis, the Tribunal upheld the impugned order imposing duty liability on the appellant under the amended notification, dismissing the appeal.In conclusion, the Tribunal found the enhanced duty rate specified in Customs Notification No. 208/79 to be legally applicable to the imported goods, rejecting the appellant's arguments invoking promissory estoppel. The decision was based on a thorough examination of statutory provisions, legal precedents, and the timeline of events related to the importation process.