- (1.) The appellant, who is a registered multi-unit co-operative society under the Bombay Co-operative Societies Act, filed writ petitions under Special Civil Application Nos. 94 and 472 of 1977 before the High Court of Gujarat at Ahmedabad seeking issuance of a writ of certiorari to quash and set aside the order made by the Appellate Collector of Customs, Bombay, dated 25-2-1976 confirming the order made by the Collector of Customs at Kandla dated 26-2-1975.
(2.) It was contended before the High Court that the appellant manufactures chemical fertilizer and other allied products in its factory at Kalol and new Kandla Port in the State of Guajrat. It is also stated that for the purpose of manufacture of chemical fertilizers, the appellant imports "phosphoric acid" for use in the manufacture of nitrogen phosphorus potash, and by the impugned order the respondents had levied auxiliary duty of customs at the rate of 15 percent purporting to levy the same under clause 1 of Notification No. 14 dated 1-3-1974 issued by the Central Government in exercise of its power under Sec. 25(1) of the Customs Act, 1962 read with clause 19(4) of the Finance Bill, 1974. The appellant contended before the High Court that, as a matter of fact, the phosphoric acid imported by the appellant was subjected to a levy of 5% of auxiliary duty of customs under the above notification because the goods imported by the appellant would fall under clause 2 of the said notification. Since the appellant was wrongly levied higher auxiliary duty at 15 percent, it had prayed for refund of the excess amount collected from it.
(3.) It is not in dispute that at the relevant time the rates at which the customs duty was to be recovered was specified in the First and the Second Schedules of the Tariff Act, 1934 which had provided for levy of duty at standard rate, preferential rate and protective rate as specified in the First Schedule. The import made by the appellant was referable to Item 28(16) which prescribed a standard rate and preferential rate of duty for phosphoric acid.;