Gemini Edibles and Fats India Pvt. Ltd Vs Union of India (Through its Secretary) (Madras High Court)
a) A Notification, merely by virtue of having been issued under Section 25(1) of the Customs Act, cannot be understood as granting exemption from levy of Customs Duty, instead, one must enquire and find the substance of the notification.
b) The subject notifications, Notification Nos.24 and 25 of 2015 cannot be understood as granting exemption from levy of SWS, inasmuch as, the notifications only refer to Section 25(1) and bear no reference to Section 110 of the Finance Act under which SWS is levied.
c) The effect of debiting of duty scrips is not administrative, but, is, a mode of payment of duty and thus, the argument that there is neither levy nor collection of customs duty is untenable.
d) The fact that duty does not form part of Consolidated Fund of India does not have any bearing on determining the scope and nature of an exemption notification nor would have relevance in determining as to whether there was any levy/ collection of duty.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
The present appeals are filed challenging the order of the learned Judge insofar as it finds that the appellant is liable to pay Social Welfare Surcharge (hereinafter referred to as “SWS”) and it cannot be discharged by debiting from the MEIS / SEIS Scrips, while directing the appellant to pay SWS either in cash or in any other mode.
