{"id":94384,"date":"2002-03-01T00:00:00","date_gmt":"2002-02-28T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/naraindas-brothers-vs-union-of-india-uoi-and-anr-on-1-march-2002"},"modified":"2018-10-13T10:34:21","modified_gmt":"2018-10-13T05:04:21","slug":"naraindas-brothers-vs-union-of-india-uoi-and-anr-on-1-march-2002","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/naraindas-brothers-vs-union-of-india-uoi-and-anr-on-1-march-2002","title":{"rendered":"Naraindas Brothers vs Union Of India (Uoi) And Anr. on 1 March, 2002"},"content":{"rendered":"<div class=\"docsource_main\">Delhi High Court<\/div>\n<div class=\"doc_title\">Naraindas Brothers vs Union Of India (Uoi) And Anr. on 1 March, 2002<\/div>\n<div class=\"doc_citations\">Equivalent citations: 2002 (82) ECC 37, 2002 (143) ELT 52 Del<\/div>\n<div class=\"doc_author\">Author: A Sikri<\/div>\n<div class=\"doc_bench\">Bench: S Sinha, A Sikri<\/div>\n<\/p>\n<pre><\/pre>\n<p>JUDGMENT<\/p>\n<p> A.K. Sikri, J. <\/p>\n<p> 1. Under the Customs Tariff Act, 1975 the<br \/>\npetitioner was required to pay the customs duty on the<br \/>\nimportation of PBSY cotton seed oil at the rate of 60<br \/>\nper cent ad valorem and the additional duty. Under<br \/>\nSection 25 of the Customs Tariff Act, the Central<br \/>\nGovernment has been given power to grant exemption from<br \/>\npayment of duty if it is satisfied that it is necessary<br \/>\nin the public interest so to do. In exercise of this<br \/>\npower, the Central Government issued two notifications<br \/>\ndated 1st April, 1980 and 24th October, 1980 granting<br \/>\ntotal exemption from payment of custom duty and<br \/>\nadditional duty on edible oils imported into India by<br \/>\nthe National Dairy Development Board (for short<br \/>\n&#8216;NDDB)&#8217;. The petitioner has sought to challenge the<br \/>\naforesaid orders on the ground that granting of<br \/>\nexemption to NDDB and not to the petitioner would be<br \/>\ndiscriminatory and also violative of Article 19(1)(g)<br \/>\nof the Constitution of India inasmuch as the commodity<br \/>\nimporter by the petitioner would be at a higher price<br \/>\nthan that of the NDDB which is not leviable to pay any<br \/>\nsuch duty.\n<\/p>\n<p> 2. The issue involved in this case has already<br \/>\nbeen decided by the Division Bench of this court in<br \/>\ncase of    M. Jehangir Bhatusha v. Union of India   being<br \/>\nCWP No. 1517\/79 decided on 14th November, 1979.\n<\/p>\n<p> 3. The court in this case did not find favor<br \/>\nwith the contentions of the petitioners on both counts<br \/>\nand held that neither grant of exemption in favor of<br \/>\npublic undertaking(STC) in that case was discriminatory<br \/>\nnor was there any violation of Article 19(1)(g) of the<br \/>\nConstitution of India. Relying upon the decision of<br \/>\nthe Supreme Court in the case of    <a href=\"\/doc\/1758272\/\">Shree Meenakshi Mills<br \/>\nLtd. v. Union of India<\/a>   ,<br \/>\nthe court held that a price control measure adopted by<br \/>\nthe Government cannot be deemed to be an unreasonable<br \/>\nrestriction on the rights of the petitioners guaranteed<br \/>\nby Article 19(1)(g) of the Constitution only because it<br \/>\neither reduces the profit margin of the petitioners or<br \/>\neven results in some loss to the petitioners. The<br \/>\narguments of discrimination was repelled in the<br \/>\nfollowing words:\n<\/p>\n<p>  &#8220;That the classification between the<br \/>\nGovernment or a Government Corporation<br \/>\nlike the STC, on the one hand, and the<br \/>\npetitioners and other private persons, on<br \/>\nthe other hand, is reasonable is settled<br \/>\nby a series of decisions ending in the<br \/>\nseven-Judge Bench decision in    <a href=\"\/doc\/1293557\/\">Maganlal<br \/>\nChanganlal (P) Ltd. v. Municipal<br \/>\nCorporation of Greater Bombay and Ors.,<\/a><br \/>\n(1974) 2 SCC 402  . The object of the<br \/>\nclassification has also a rational<br \/>\nconnection with the distinction made<br \/>\nbetween the STC and the petitioners.<br \/>\nWhile the STC is under the control of the<br \/>\nGovernment the petitioners are not. This<br \/>\nis why the benefit of the reduction of<br \/>\nduty is given to the STC alone and not to<br \/>\nthe petitioners. Moreover, while the<br \/>\ncost of the import by the STC is known to<br \/>\nthe Government, the cost of the imports<br \/>\nby the petitioners it is not so known to<br \/>\nit. Lastly, the impact of the price of<br \/>\nvanaspati through lowering of the import<br \/>\nduty on the imports by the STC is secured<br \/>\nin accordance with the guidelines laid<br \/>\ndown by Sub-section (2) of Section 25 of<br \/>\nthe Act. For these reasons the impugned<br \/>\norders are valid and they have not been<br \/>\nshown to be contrary to Article 14 of the<br \/>\nConstitution.&#8221;\n<\/p>\n<p> 4. In the result this writ petition is dismissed.<br \/>\nThe petitioner is liable to pay the balance custom duty<br \/>\non the goods imported by it.\n<\/p>\n<p> 5. There shall be no order as to costs.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Delhi High Court Naraindas Brothers vs Union Of India (Uoi) And Anr. on 1 March, 2002 Equivalent citations: 2002 (82) ECC 37, 2002 (143) ELT 52 Del Author: A Sikri Bench: S Sinha, A Sikri JUDGMENT A.K. Sikri, J. 1. Under the Customs Tariff Act, 1975 the petitioner was required to pay the customs duty [&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":[14,8],"tags":[],"class_list":["post-94384","post","type-post","status-publish","format-standard","hentry","category-delhi-high-court","category-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Naraindas Brothers vs Union Of India (Uoi) And Anr. on 1 March, 2002 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/naraindas-brothers-vs-union-of-india-uoi-and-anr-on-1-march-2002\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Naraindas Brothers vs Union Of India (Uoi) And Anr. on 1 March, 2002 - Free Judgements of Supreme Court &amp; 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