Rohinton Fali Nariman JUDGMENT
A.K. Sikri, J.
1. These appeals are preferred by the Appellant challenging the validity of judgment dated 11.10.2002 passed by the Division Bench of the High Court of Judicature at Madras. The High Court has, vide the said judgment, disposed of few writ petitions filed Under Article 226 of the Constitution of India as well as certain writ appeals which were filed against the orders of the single Judge. All the aforesaid writ petitions and writ appeals were preferred by the Appellants herein.
2. The subject matter of those writ petitions/writ appeals was the constitutional validity of proviso (II-i) of Rule 9(2) of the Customs Valuation (Determination of Price of Imported Goods) Rules, 1988 (hereinafter referred to as the "Valuation Rules"). This proviso has been inserted by Notification No. 39/90 : MANU/EXCR/0098/1990 dated 05.07.1990 issued by the Ministry of Finance, Department of Revenue, Union of India. As per the Appellant, this proviso is not only ultra vires Section 14(1) and Section 14(1-A) of the Customs Act, 1962 (hereinafter referred to as the 'Act') but is also violative of Article 14 and Article 19(1)(g) of the Constitution of India. The challenge, however, stands repelled by the High Court in the impugned judgment leading to dismissal of writ petitions and writ appeals. This is how these appeals have come up in this Court, via special leave petition route, in which leave was granted.
3. In order to understand the controversy, purpose would be served in taking note of the facts from the Writ Appeal No. 1079/2000 which was filed by the Appellant in the High Court. The Appellant is engaged in the manufacture and marketing of Mini and Micro Computer Systems and peripheral devices like printer, drivers etc. It, inter alia, imported various components including software from time to time. The Appellant presented a Bill of Entry No. 15020 dated 15.04.1993. The chargeable weight of the consignment was 315 kgs and the actual loading, unloading and handling charges amounted to Rs. 65.40 paisa as per the tariff of the International Airport Authority of India, Madras (now Chennai). However, the Customs Authorities, on the basis of the impugned notification added a sum of Rs. 15,214.69 paisa to the value of the goods as handling charges as the impugned provision entitles the authorities to add 1% of the F.O.B. value of goods on account of loading, unloading and handling charges. The actual duty charged, as a consequence of addition of the notional handling charges, amounted to Rs. 16,209.20 paisa instead of Rs. 69.98 paisa.
4. At this juncture, instead of proceeding further with the factual narration, we would like to deviate a bit and take note of the relevant <........