In a recent case, the Delhi High Court directed to refund duty paid as the Customs Duty is not payable when the Director General of Foreign Trade (DGFT) extended the benefit of Tariff Rate Quota (TRQ) for the import of crude soyabean oil.
The petitioner, Ajanta Soya Ltd challenged Notification No.15/2023 dated 03.03.2023. Petitioner further sought the issuance of appropriate Notification for clearance of imports of Tariff Rate Quota (TRQ) consignment in line with Public Notice dated 01.03.2023.
The petitioners are aggrieved by the illegal imposition of the Agricultural Infrastructure Development Cess (AIDC) and denial of exemption benefit under TRQ for the import of crude soyabean oil.
As per the petitioners, the DGFT issued a Public Notice dated 24.05.2022 to allocate TRQ for the import of crude soyabean oil and crude sunflower seed oil during the Financial Years 2022-2023 and 2023-2024 up to 20,000 metric ton per year for each of these commodities.
Correspondingly, on the same date the Ministry of Finance, and Department of Revenue issued an exemption Notification dated 24.05.202 for granting exemption from custom duty and AIDC to the goods covered under TRQ. Subsequently, by Public Notice dated 11.01.2023, the DGFT decided to discontinue the TRQ for the import of crude soyabean oil with effect from 01.04.2023. The Public Notice provided that a Bill of Lading dated on or before 31.03.2023 shall be allowed for imports under crude soyabean oil TRQ till 30.06.2023.
However, the consequential Notification No.15/2023-Customs dated 03.03.2023, issued by the Ministry of Finance, Department of Revenue did not extend the benefit to the Bills of Lading dated on or before 31.03.2023 till 30.06.2023 and restricted the same to 31.03.2023 with the result that consignments covered under the Bills of Lading which were dated on or before 31.03.2023, but were landing at the ports later, even up till 30.06.2023 were not covered under the exemption and accordingly, the AIDC and custom duty was payable on them.
In the meantime some of the consignments that had landed after the said dates were cleared under protest on payment of duty. Petitioners are also claiming a refund of the duty paid on said consignments.
A division bench comprising Justice Sanjeev Sachdeva and Justice Ravinder Dudeja disposed of holding that the benefit under TRQ being extended till 30.06.2023, the imports made in terms of the extant policy where the Bills of Lading are dated on or before 31.03.2023, would be covered under the said policy if the goods had landed before 30.06.2023.
The court further held that relief of refund of duty if any paid by the petitioners be also granted by law.
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