Susanta Chatterjee, J. - (1.) This Rule was issued on 2-5-1979 on the writ petitioners challenging and/or praying, inter alia, for an appropriate writ of mandamus commanding the respondents to forthwith recall, cancel and withdraw and/or rescind the purported orders demanding any duty in respect of the 457 bales of viscose staple fibre imported by the petitioner No. 1 per vessel M.V. Ayuthia, on the ground that Section 12(1) of the Customs Act, 1962 which is the only charging section provides that duties are levied inter alia on goods imported into India. The taxable event is the import of the goods into India, i.e., bringing into India from a place outside India. The char-geability to duty depends on whether or not there was any duty at the point of the time when the subject goods were imported into India. It is also stated that in the instant case, the import of the goods was complete in any event on December 29,1978 when the vessel carrying the goods arrived at the "Sandheads" which is admittedly within India and/or the territorial waters of India and as such the import of the goods was complete prior to December 31, 1978 when the exemption Notification No. 388/F No. 355/105/76-Cus., dated August 2,1976 was operative. Accordingly, according to the petitioner, the respondents have no right, authority or jurisdiction to demand any duty under the said Act and/or under the Customs Tariff Act, 1975 in respect of the said imported goods.
(2.) It is stated in detail that the petitioner No. 1 Maharaja Shree Umaid Mills Limited in the usual course of its business placed an order for import of the goods with the overseas suppliers. Pursuant to the said order, 457 bales, weight about 1,00.408 kgs. of the goods were shipped to and/or on account of the petitioner No. 1 per vessel M. V. Ayuthia from Austria. The said bales were covered by a bill of lading. In anticipation of the arrival of the said vessel, petitioner No. 1 on or about 5th November, 1978 presented a bill of entry for home consumption for clearance of the goods, 457 bales of viscose staple fibre. On November 17,1978 the respondents-Customs classified the said goods as duty-free and made such endorsement on the said bill of entry. Thereafter, on December 29,1978 the said vessel M.V. Ayuthia arrived at the "sandheads" within the territorial waters of India, and on or about 5th January, 1978, (1979?) the Central Government issued 3 (three) different notifications all dated January 5,1979, bearing Nos. 6/79-Cus., (sic) under Section 25(1) of the Customs Act. By Notification No. 8/79-Cus. thereof, exemption was granted to the petitioners on the import of the goods from so much of the portion of the additional duty leviable thereon under Section 3 of the Customs Tariff Act, 1975 as is in excess of Rs. 1.32 per kilogram. By the other two notifications as aforesaid, exemption was granted from the whole of the duty of customs and auxiliary duty on the said goods, as alleged in the writ petition. The respondents-Customs authorities however, are, according to the petitioners, claiming that the said goods have become leviable to the duty of customs as also additional duty as according to them, the said goods are not entitled to exemption in terms of the said notification dated August 2,1976. Being aggrieved, the petitioners have come up to the Court and obtained the instant Rule with ad interim order in terms of prayers (f) and (g) of the writ-petition permitting the petitioners to submit bank guarantee to the satisfaction of the Registrar, High Court, Appellate Side for the amount of Rs. 75,000/-.
(3.) The Rule is contested by the respondents-customs authorities.;