Patanjali Foods Limited Vs Union of India (Karnataka High Court)
Karnataka High Court held that section 25(4) of the Customs Act is declared as arbitrary and contrary to section 25(1) and (2A) of the Customs Act. Accordingly, the present writ petition stands allowed.
Facts- The present writ petition is filed under articles 226 and 227 of the Constitution of India praying to declare and hold that section 25(4) of the Customs Act, 1962 as amended by the Finance Act, 2016 is arbitrary illegal, ultravirus and unconstitutional and hence struck down the same accordingly.
Conclusion- Madras High Court in the case of Ruchi Soya Industries Ltd. has held that section 25(4) of the Customs Act is declared as arbitrary and contrary to Section 25(1) and (2-A) of the Customs Act, 1962 and that the respondents are liable to repay the amount collected from the petitioners for clearance of imported goods for home consumption beyond the original rate prevailing on the date of prior to date of publication of notification i.e., Rs.2,88,16,200/- with interest paid by the petitioner from the date of deposit till the date of payment.
Held that the petition is hereby allowed. The impugned Bill of Entry are hereby quashed. Respondents are directed to refund a sum of Rs.3,40,99,332/- together with interest from the date of deposit till the date of refund in favour of the petitioner within a period of three months from the date of receipt of a copy of this order.
