In Brief
Granules India Ltd imported chemical consignments under an advance licence scheme and claimed duty exemption under customs notifications dated 1992. A 1993 amendment withdrew the exemption, but a 1994 clarificatory notification restored it. The High Court dismissed the duty exemption claim because the appellant did not initially produce the clarificatory notification and said the authorities were unaware of it. The Supreme Court allowed the appeal, holding that the entire consignment fell under one licence issued before the amendment, and it was no defence for State authorities to claim ignorance of their own notification. The Court emphasised that State authorities have a constitutional duty to act fairly and cannot behave like private litigants by hiding behind procedural defences.
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