A Notification would come into effect from date and time when it was electronically printed in gazette and mere uploading same on website would have no significance and, therefore, where Notification No. 29/2018-cus, dated 01-03-2018 was updated on 02-03-2018 and came to be published in official gazette on 06-03-2018 whereas custom duty had already been paid by assessee on 05-03-2018, enhanced amount sought to be realised from assessee on basis of aforesaid Notification was unlawful.

  • Vide decision of High Court of Madras in Ruchi Soya Industries Limited vs. Union of india

Facts of the case:

  1. Assessee company entered into a contract with its foreign supplier in Malaysia for purchase of edible palm oil.
  2. A dispute arose with regard to payment of customs duty for clearance of subject goods , which respondent claimed on strength of Notification No. 29/2018-cus, dated 1-3-2018- Assessee thus filed instant petition seeking a declaration that Notification dated 1-3-2018, was arbitrary, illegal, ultra vires and infringing fundamental rights of assessee to trade.
  3. Assessee contended that said notification was updated on 2-3-2018 and came to be published in official gazette on 6-3-2018.
  4. According to assessee, custom duty had already been paid on 5-3-2018 and, thus, enhanced amount sought to be realised from assessee was unlawful
  5. It was noted that Notification would come into effect from date and time when it was electronically printed in gazette and mere uploading same on website would have no significance- Said reasoning did not suffer from any infirmity nor any material was brought on record to take a different view of matter.

Judgement:

The Honorable High Court of Madras held the case as follows: instant petition was to be allowed with a direction to respondents to refund entire excess amount paid by assessee as enhanced duty under protest.

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