Case: Choksi Tube Company Limited Vs. Union of India and Others

The notification that was issued in favour of the said mills was dated 19-3-1977. It exempted in the public interest 735.787 MTs of stainless steel strips imported by the said mills from customs duty leviable thereon in the same manner as prevailed under Exemption Notification No. 256-Cus/76. The representation made by the petitioners on 25-3-1977 was rejected on 20-5-1978; no reason for the refusal was assigned. The petitioners also sought the benefit of Exemption Notification No. 27/77 dated 24-2- 1977 to be applied to them retrospectively. This was refused on 23-6- 1978 on the ground that the exemption could not be issued so as to have retrospective effect.

Court's reasoning:
The petitioners had paid customs duty when the goods were cleared and that duty is the duty that would be payable having regard to our order. It shall, however be open to the respondents to make the requisite verification and claim from the petitioners any shortfall, if any, which Mr Salve, on behalf of the petitioners, states that the petitioners shall pay. The bank guarantee given by the petitioners for the differential duty amount pursuant to the orders of this Court shall now stand discharged