https://www.taxtmi.com/css/info/rss_sitemap/rss_feed.css?v=1746094055 https://www.taxtmi.com Business/Tax/Law/GST/India/Taxation/Policies/Legal/Corporate Tax/Personal Tax/Vat Law/Legal Information/Tax Information/Legal Services/Tax Services Tax Management India. Com / MS Knowledge Processing Pvt. Ltd. All rights reserved. One stop solution for Direct Taxes and Indirect Taxes https://www.taxtmi.com/caselaws?id=40052 https://www.taxtmi.com/caselaws?id=40052 Levy of customs duty on newsprint - Validity of the imposition of import duty on newsprint imported from abroad under section 12 of the Customs Act, 1962 - crippling the freedom of speech and expression guaranteed under article 19(l)(a) and article 19(l)(g) of the Constitution - Classification of newspapers for purposes of granting exemption is done in the public interest having regard to relevant considerations. HELD THAT:- It is no doubt true that some of the petitioners have also questioned the validity of the levy prescribed by the Customs Tariff Act, 1975, itself. But we are of the view that it is unnecessary to quash it because of the pattern of the legislative provisions levying customs duty which authorise the Government in appropriate cases either to reduce the duty or to grant total exemption under section 25 of the Customs Act, 1962, having regard to the prevailing circumstances and to vary such concessions from time to time. The Governmental practice in the matter of customs duties has made the law imposing customs virtually a hovering legislation. Parliament expects the Government to review the situation in each case periodically and to decide what duty should be levied within the limit prescribed by the Customs Tariff Act, 1975. Hence, the validity of the provision in the Customs Tariff Act, 1975, need not be examined now. Since it is established that the Government has failed to discharge its statutory obligations in accordance with law while issuing the impugned notifications issued under section 25 of the Customs Act, 1962, on and after March 1, 1981, the Government should be directed to re-examine the whole issue relating to the extent of exemption that should be granted in respect of imports of newsprint after taking into account all relevant considerations for the period subsequent to March 1, 1981. We adopt this course since we do not also wish that the Government should be deprived of the legitimate duty which the petitioners would have to pay on the imported newsprint during the relevant period. In the result, in view of the peculiar features of these cases and having regard to article 32 of the Constitution which imposes an obligation on, this court to enforce the fundamental rights and article 142 of the Constitution which enables this court in the exercise of its jurisdiction to make such order as is necessary for doing complete justice in any cause or matter pending before it, we make the following order in these cases: 1. The Government of India shall reconsider within six months the entire question of levy of import duty or auxiliary duty payable by the petitioners and others on newsprint used for printing newspapers, periodicals, etc., with effect from March 1, 1981. The petitioners and others who are engaged in newspaper business shall make available to the Government all information necessary to decide the question. 2. If on such reconsideration, the Government decides that there should be any modification in the levy of customs duty or auxiliary duty with effect from March 1, 1981, it shall take necessary steps to implement its decision. 3. Until such redetermination of the liability of the petitioners and others is made, the Government shall recover only Rs. 550 per MT on imported newsprint towards customs duty and auxiliary duty and shall not insist upon payment of duty in accordance with the impugned notifications. The concessions extended to medium and small newspapers may, however, remain in force. 4. If, after such redetermination, it is found that any of the petitioners is liable to pay any deficit amount by way of duty, such deficit amount shall be paid by such petitioner within four months from the date on which a notice of demand is served on such petitioner by the concerned authority. Any bank guarantee or security given by the petitioners shall be available for recovery of such deficit amounts. 5. If, after such redetermination, it is found that any of the petitioners is entitled to any refund, such refund shall be made by the Government within four months from the date of such redetermination. 6. A writ shall issue to the respondents accordingly in these cases. The petitions are accordingly allowed. Case-Laws Customs Thu, 06 Dec 1984 00:00:00 +0530