1990 (7) TMI 120 - HC - Customs

Summary

Issues:
1. Interpretation of duty exemption scheme for deemed exports to IBRD/IDA aided projects.
2. Delay in issuance of import license and its impact on project completion.
3. Customs duty liability on imported goods under duty exemption scheme.

Analysis:
The case involved a petitioner engaged in manufacturing ACSR conductors, importing raw materials for production. The petitioner claimed entitlement to duty-free imports under the duty exemption scheme for deemed exports to projects financed by IBRD/IDA. The government had issued notifications exempting customs duty for such imports. However, delays in issuing import licenses caused the petitioner to procure raw materials locally to meet project deadlines, risking penalties for delayed delivery. The petitioner imported goods under a special import license but faced customs duty demands from authorities despite fulfilling export obligations.

In a similar case, the court had previously ruled in favor of the petitioner, emphasizing compliance with the Import and Export Policy provisions and relevant notifications. The judgment highlighted the petitioner's fulfillment of conditions for duty-free importation under the updated notification of June 5, 1987. It clarified that no duty was payable for the imported goods based on the new notification, allowing clearance without duty payment. The court directed customs authorities to clear the goods accordingly, granting the petitioner the benefit of duty-free importation for goods used in manufacturing.

As a result of the court's decision, the petitioner was entitled to clear the imported goods without paying customs duty, aligning with the duty exemption scheme for deemed exports. The judgment provided clarity on the petitioner's rights under the updated notification, ensuring compliance with the Import Policy provisions. The court's ruling upheld the petitioner's claim for duty-free clearance of imported goods, emphasizing adherence to the terms and conditions specified in the relevant notifications.

In response to the judgment's success for the petitioner, the court granted a stay of operation for six weeks upon the oral prayer of the respondents' advocate. All parties were instructed to act based on a signed copy of the judgment, allowing for the clearance of goods without customs duty payment as per the court's decision. The ruling reinforced the petitioner's entitlement to duty-free importation under the duty exemption scheme, providing a favorable outcome in resolving the customs duty liability issue for the imported goods.