# In the matter of Ruchi Soya Industries Ltd. Vs. Union of India and Anr. W.P. No. 31090 of 2015 and M.P. No. 2 of 2015

> HC judgment dated 2021-04-26. Citation: TCN-2021-HC-00030. The writ petition challenges the reassessment of a Bill of Entry dated 15.09.2015. The petitioner…

- **Court:** HC
- **Order date:** 26 Apr 2021
- **Citation:** TCN-2021-HC-00030
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-chandigarh-bench/ruchi-soya-industries-ltd-vs-union-of-india-and-anr-wp-no-31090-of-2015-and-mp-n-117297b1

## Summary

### Background

The writ petition challenges the reassessment of a Bill of Entry dated 15.09.2015. The petitioner argues that an amendment to a notification increasing the customs duty from 7.5% to 12.5% should not apply because it was not in force on the date of assessment. The petitioner contends that the notification was not offered for sale on the date of its issue, a condition required by Section 25(4) of the Customs Act, 1962. The petitioner also argues that insolvency proceedings were initiated against them under the Insolvency and Bankruptcy Code, 2016, which should impact the customs duty demand.

## Facts

M/s. Ruchi Soya Industries Ltd. filed a Bill of Entry in advance to clear a consignment of crude palm oil, proposing to pay Basic Customs Duty (BCD) at 7.5% as per a notification dated 16.3.2012. However, by the time the Bill of Entry was assessed, the notification had been amended, increasing the BCD to 12.5%. The petitioner argues that the amended notification was not in force on the date of assessment because it was not offered for sale on the date of its issue, as required by Section 25(4) of the Customs Act, 1962. The petitioner also argues that insolvency proceedings were initiated against them under the Insolvency and Bankruptcy Code (IBC), 2016. A petition under the IBC was filed by Standard Chartered Bank, and the National Company Law Tribunal (NCLT), Mumbai,

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## Issues and analysis

### Issue 1: Whether the amended customs duty notification was effectively in force on the date of assessment, …

**Ratio:** The court held that the second limb of section 25(4) of the Customs Act, 1962 requiring

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**Reasoning:** The court reasoned that with the advancement of information technology, the requirement

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**Interpretation:** The court interpreted Section 25(4) of the Customs Act, 1962, in light of the

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**Application:** The court applied the reasoning to the facts of the case, noting that the

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## Parties

- **Judges:** C.SARAV…
- **Appellants:** M/s.Ruchi Soya…
- **Respondents:** Union of…
- **Advocates:** Rajesh…; V.Pus…; +1 more

## Timeline

- **2015-09-15 — Bill of Ent…**: Date of the Bill of Entry for…
- **2015-09-17 — Notificatio…**: Date of the amended…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(21) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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