9911796707
|
Home
Issues Involved:
1. Interpretation of Notification No. 125/86-Cus., dt. 17-2-1986. 2. Whether the imported Bottle Labelling Machine qualifies for exemption under the said notification. 3. Preliminary objections raised by the respondents regarding alternative remedies, waiver, and prematurity of the writ petition. 4. Definition and scope of "food article" within the context of the notification. 5. Procedural irregularities in the decision-making process of the Customs Authority. Detailed Analysis: 1. Interpretation of Notification No. 125/86-Cus., dt. 17-2-1986: The primary issue is the interpretation of Notification No. 125/86-Cus., which exempts certain goods from customs duty when imported for use in processing/packaging of food articles. The petitioner imported a fully automatic Bottle Labelling Machine and claimed exemption under this notification. The Customs Authority rejected this claim, leading to the present writ petition. 2. Whether the Imported Bottle Labelling Machine Qualifies for Exemption: The petitioner argued that the machine should be exempted as it is used in the packaging of beer, which they contended is a food article. The Customs Authority did not dispute the classification of the machine under Tariff Heading No. 8422.20 or its coverage under Item No. 20 of the notification but questioned whether beer qualifies as a food article. 3. Preliminary Objections Raised by the Respondents: - Alternative Remedy: The respondents argued that the petitioner had an alternative remedy under the Customs Act, 1962. However, the court found that relegating the petitioner to this remedy would serve no useful purpose, as the Customs Authority had already categorically rejected the petitioner's contentions. - Waiver and Estoppel: The respondents claimed that the petitioner waived its right to claim exemption by a letter from its agent. The court found that the Customs Authority did not treat the matter as concluded by this letter, as they still offered a personal hearing. - Prematurity of the Writ Petition: The respondents argued that the writ petition was premature since the Customs Authority had offered a personal hearing. The court disagreed, noting that the assessment on the Bill of Entry was final and the Customs Authority had already formed a view on the matter. 4. Definition and Scope of "Food Article": - Object and Context of the Notification: The court examined the broader context, including the Agricultural and Processed Food Product Export Development Authority Act, 1985, and the establishment of the Ministry of Food Processing Industry. Both included beer as a food product, indicating that the term "food article" in the notification should encompass beer. - Literal Construction: The court noted that "food" has no fixed definition and varies by statute. It cited various sources, including the New Encyclopaedia Britannica and an article in Brewers Digest, which recognized beer's nutritional value. - Common Parlance: The court considered whether beer is understood as food by those who deal with it, including Customs Authorities, export/import authorities, and food departments. The court found that beer is treated as a food article by these authorities and in certain social contexts. 5. Procedural Irregularities: The petitioner argued that the Customs Authority's decision was procedurally flawed as they were not given an opportunity to be heard. The court agreed, noting that this procedural irregularity justified interference under Article 226. Conclusion: The court concluded that beer is a food article within the meaning of the said notification. It found the Customs Authority's decision to be perverse and set aside the assessment made on the Bill of Entry. The respondents were directed to grant the petitioner the benefit of the notification and release the machine upon payment of the duty as per the notification. No order as to costs was made, and the petitioner was instructed not to dispose of or encumber the machine for three weeks. Operative Part: The respondents were directed to release the machine forthwith, and all parties were to act on a signed copy of the operative part of the judgment.
|
