JUDGMENT

Shah, J.-Two Judges Bench of this Court by order dated 15th October, 1999 has referred this matter to a larger Bench by observing thus :-

"It appears that there is a conflict in the ratio of the decisions of this Court in M/s. Pankaj Jain Agencies v. Union of India and others [1994(5) SCC 198], Collector of Central Excise v. New Tobacco Co. and others [1998(8) SCC 250] and I.T.C. Limited v. Collector of Central Excise, Bombay [1996(5) SCC 538] is also relevant. In our view it is appropriate that this appeal is to be heard by a larger Bench".

2. Before referring to the said decisions, we would narrate few facts involved in the matter.

Respondent admittedly imported a consignment of Green Beans. (Pulses) weighing 505-505 M.T. vide Invoice No. 14/099 dated 31.12.1986. They have filed bill of entry for the same on 5.2.1987. The importer claimed clearance of the said goods free of duty on the basis of Exemption Notification No.129/76-Cus dated 2.8.1976. However, it was pointed out that on 4.2.1987 the said notification was amended vide Notification No. 40/87-Cus, whereby basic duty @ 25 was levied. As the duty was levied @ 25 , importer filed Writ Petition No. 535 of 1987 in