# In the matter of Union of India and Ors. Vs. Ruchi Soya Industries Ltd. Writ Appeal No. 2575-2018 (T-TAR)

> HC judgment dated 2021-05-27. Citation: TCN-2021-HC-00027. This Writ Appeal concerns a dispute over the applicable customs duty rate on imported Crude Palm…

- **Court:** HC
- **Order date:** 27 May 2021
- **Citation:** TCN-2021-HC-00027
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-chandigarh-bench/union-of-india-and-ors-vs-ruchi-soya-industries-ltd-writ-appeal-no-2575-2018-b523f88a

## Summary

### Background

This Writ Appeal concerns a dispute over the applicable customs duty rate on imported Crude Palm Oil of Edible Grade. The respondent, Ruchi Soya Industries Ltd., imported the goods, and the appellants, Union of India and customs officials, sought to apply a higher duty rate of 12.5% based on Notification No.46/2015-Cus. dated 17.09.2015. The respondent contended that the earlier Notification No.12/2012-Cus. dated 17.03.2012, prescribing a 7.5% duty, should apply. The learned Single Judge ruled in favor of the respondent, quashing the reassessment and holding the respondent liable to pay duty only at 7.5%. The Union of India appealed this decision.

## Facts

Ruchi Soya Industries Ltd. imported 10,000 Metric Tons of Crude Palm Oil of Edible Grade from M/s. Aavanti Industries Private Limited, Singapore, under a contract dated 27.07.2015. The vessel carrying the goods arrived at Mangalore Port on 17.09.2015 around 1600 hours. The respondent had filed four bills of entry dated 16.09.2015, seeking clearance for home consumption, and the bills were assessed at a duty rate of 7.5% based on Notification No.12/2012-Cus. The respondent was required to deposit Rs.2,64,95,907/-. The inward entry of the vessel was permitted at 22.45 hours on 17.09.2015. The appellants sought to apply Notification No.46/2015-Cus. dated 17.09.2015, demanding a higher duty rate of 12.5%. The respondent contended that this notification was not applicable

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## Issues and analysis

### Issue 1: Whether the notification dated 17.09.2015, enhancing the customs duty, is applicable to the goods …

**Ratio:** A notification enhancing customs duty must be published and offered for sale on the date

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**Reasoning:** The court reasoned that the requirement of publication and offering for sale is a

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**Interpretation:** Section 25(4) of the Customs Act mandates that a notification must not only be

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**Application:** In this case, the notification dated 17.09.2015 was not available for sale on

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## Parties

- **Judges:** B.V. NAGA…; HANCHATE SANJEEVKU…
- **Appellants:** Union of…
- **Respondents:** Ruchi Soya…

## Timeline

- **2015-07-27 — Contract…**: Respondent entered into a contract with M/s.Aavanti Industries Private Limited, Singapore…
- **2015-09-16 — Bills of Entr…**: Respondent filed four bills of entry…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 31 — Approval of resolution plan](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-31)

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