The Gujarat High Court directed the Authority to refund the amount collected as stamp duty on Bills of Entry filed for the imported goods.
The writ applicants, Ram Ratna Wires and M/s. R.R. Kabel Ltd. are engaged in the business of manufacture of goods like various varieties of cables and wires and for the purpose of manufacturing of goods, various types of raw materials like the Copper Wire Rod, PVC Resin, Plasticizer, Feelers etc. are being imported from various countries and the goods so imported are brought to the various Customs Stations.
It is the case of the writ applicants that, in accordance with Section 46 of the Customs Act, 1962, they have been filing Bills of Entry before the respondents authorities wherein they declare all the details of the imported goods like the description of the goods, quantity, value of the goods, classification of the gods and applicable rates of custom duties etc.
The levy of stamp duty on the Bills of Entry is on the basis that the Bills of Entry under the Customs Act could be construed as a “Delivery order in respect of goods” as contemplated under Article 24 of the Schedule-I to the Bombay Stamp Act. The difficulty, which the writ applicants are facing as on today is that the Custom Officer, upon instructions from the respondent authority have started denying the permission for the clearance of imported goods unless and until a document evidencing payment of stamp duty, is submitted before them with respect to the Bills of Entry.
The division bench of Justice J.B.Pardiwala and Justice Ilesh J. Vora quashed and set aside the order of the authority and directed the authority to refund the amount to both the writ applicants within a period of 4 weeks from the date of receipt of writ of this order.
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