{"id":104570,"date":"1999-12-01T00:00:00","date_gmt":"1999-11-30T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/collector-of-customs-vs-ms-modi-rubber-ltd-on-1-december-1999"},"modified":"2018-05-28T22:27:16","modified_gmt":"2018-05-28T16:57:16","slug":"collector-of-customs-vs-ms-modi-rubber-ltd-on-1-december-1999","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/collector-of-customs-vs-ms-modi-rubber-ltd-on-1-december-1999","title":{"rendered":"Collector Of Customs vs M\/S. Modi Rubber Ltd on 1 December, 1999"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">Collector Of Customs vs M\/S. Modi Rubber Ltd on 1 December, 1999<\/div>\n<div class=\"doc_author\">Author: S P Bharucha<\/div>\n<div class=\"doc_bench\">Bench: S.P.Bharucha, R.C.Lahoti, N.Santosh Hegde<\/div>\n<pre>           PETITIONER:\nCOLLECTOR OF CUSTOMS\n\n\tVs.\n\nRESPONDENT:\nM\/S.  MODI RUBBER LTD.\n\nDATE OF JUDGMENT:\t01\/12\/1999\n\nBENCH:\nS.P.Bharucha, R.C.Lahoti, N.Santosh Hegde,\n\n\n\n\nJUDGMENT:\n<\/pre>\n<p>S.  P Bharucha, J.\n<\/p>\n<p>      The  respondents\timported  styrene  butadiene  latex.<br \/>\nThey  claimed  for tha purposes of payment of  Customs\tduty<br \/>\nthereon\t the  benefit  of  an  exemption  notification\t(No.<br \/>\n82\/86),\t as amended on 2nd April, 1986.\t So amended, this is<br \/>\nhow the said notification read:\n<\/p>\n<p>      &#8220;in  exercise of the powers, conferred by\t Sub-section<br \/>\n(1.,  of  Section 25 of the Customs Act, 1962 (52 of  1962),<br \/>\nthe Central Government, being satisfied that it is necessary<br \/>\nin  the public interest so to do, hereby exempts raw rubber,<br \/>\nnatural\t or  synthetic rubber, latex, natural  or  synthetic<br \/>\n(including  mixtures thereof) whether or not  prevulcanised;<br \/>\nbalata,\t guttepercha  and  similar   natural  gums,  factice<br \/>\nderived\t from  oils, reclaimed rubber, waster and  scrap  of<br \/>\nunhardened  rubber, falling within Chapter .40 of the  First<br \/>\nSchedule  to the Customs Tariff Act, 1975 (51 of 1975), when<br \/>\nimported  into\tIndia, from so much of that portion  of\t the<br \/>\nduty  of customs leviable thereon which is specified in\t the<br \/>\nsaid First Schedule as is in excess of the amount calculated<br \/>\nat the rate of 40% ad valorem.\n<\/p>\n<p>      1A.   Nothing  contained\tin this\t notification  shall<br \/>\napply  to styrene butadiene rubber and oil extended  styrene<br \/>\nbutadiene rubber.  &#8221;\n<\/p>\n<p>      The  exemption  was denied to the &#8216;respondents on\t the<br \/>\nground that under clause 1A of the said notification styrene<br \/>\nbutadiene  latex was not entitled to it.  This was the\tview<br \/>\ntaken  all  the\t way  upto  the\t Customs,  Excise  and\tGold<br \/>\n(Control) Appellate Tribunal, whose order is under challenge<br \/>\nbefore\tus.  The Tribunal decided in favour of the assessee,<br \/>\nagreeing with the argument of its counsel that the exclusion<br \/>\nin  clause  1A was only of styrene butadiene rubber and\t oil<br \/>\nextended  styrene  butadiene rubber and did not cover  other<br \/>\nforms of styrene butadiene.\n<\/p>\n<p>      It  will be seen that the principal clause of the said<br \/>\nexemption  notification\t &#8216;exempts  raw\trubber,\t natural  or<br \/>\nsynthetic  rubber,  latex, natural or synthetic &#8230;&#8230;&#8221;\t The<br \/>\nprincipal  clause of the said notification, therefore, makes<br \/>\na  distinction\tbetween\t rubber, natural or  synthetic,\t and<br \/>\nlatex, natural or synthetic.  Bearing this in mind, one has<br \/>\nto  read  clause 1A of the ?aid notification.  It says\tthat<br \/>\nthe  said notification shall not apply to &#8220;styrene butadiene<br \/>\nrubber\tand  oil  extended  styrene  butadiene\trubber.&#8221;  it<br \/>\ncovers,\t therefore,  the  rubber  but not  the\tlatex.\t Our<br \/>\nattent-on  was drawn by learned counsel for the appellant to<br \/>\nitem  40.02 of the Schedule contained in Customs Tariff Act,<br \/>\n1975  where  styrene  butadiene rubber is  shown  under\t two<br \/>\nsub-heads,  &#8216;Latex&#8217; and &#8216;Others&#8217;, and it was submitted\tthat<br \/>\nthe styrene butadiene rubber referred to in clause 1A of the<br \/>\nsaid  notification  should,  therefore,\t  also\tbe  read  as<br \/>\ncovering  latex.   For\tthe  reason  that  we  have  already<br \/>\n.stated, we cannot agree.\n<\/p>\n<p>      Clause 1A of the said notification is in the nature of<br \/>\nan  exception  to the principal clause thereof and  must  be<br \/>\nconstrued  with regard to that principal clause.   Secondly,<br \/>\nas  has been rightly pointed out by learned counsel for\t the<br \/>\nassessee,  clause 1A is applicable not to styrene  butadiene<br \/>\ngenerally  but\tto  two\t categories  of\t styrene  butadiene,<br \/>\nnamely,\t styrene  butadiene rubber and oil extended  styrene<br \/>\nbutadiene rubber.\n<\/p>\n<p>      For  these  reasons,  we are of the opinion  that\t the<br \/>\nTribunal  is right in&#8217; the view that it took.  The appeal is<br \/>\ndismissed.  No order as to costs.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India Collector Of Customs vs M\/S. Modi Rubber Ltd on 1 December, 1999 Author: S P Bharucha Bench: S.P.Bharucha, R.C.Lahoti, N.Santosh Hegde PETITIONER: COLLECTOR OF CUSTOMS Vs. RESPONDENT: M\/S. MODI RUBBER LTD. DATE OF JUDGMENT: 01\/12\/1999 BENCH: S.P.Bharucha, R.C.Lahoti, N.Santosh Hegde, JUDGMENT: S. P Bharucha, J. The respondents imported styrene butadiene latex. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-104570","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Collector Of Customs vs M\/S. 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