1991 (1) TMI 155 - HC - Customs

Summary

Issues:
Challenge against order of third respondent to register contract under Project Import Regulations, 1986 and claim exemption under Notification No. 315/83.

Analysis:
The writ petition challenged the order of the third respondent dated 4-1-1991, seeking registration of a contract under Project Import Regulations, 1986, for setting up a manufacturing unit for Pre-recorded Audio Cassettes. The petitioners imported a high-speed duplicating system and aimed to avail the concessional duty under Notification No. 315/83. The Assistant Collector of Customs concluded that manufacturing Pre-recorded cassettes did not qualify as an industrial activity under the Project Import Regulations. The petitioners argued citing a judgment by S. Ramalingam, J., supporting the registration under Project Import Regulations. The Appellate Collector had also ruled in favor of a similar establishment, emphasizing manufacturing over service provision. The court, in agreement with the previous judgments, allowed the writ petition, setting aside the impugned order and directing the respondents to grant the benefit of Notification No. 315/83 for the imported goods.

Conclusion:
The court's decision was based on the interpretation of the Project Import Regulations and the eligibility for concessional duty under Notification No. 315/83. The judgment emphasized the distinction between industrial activity and service provision in the context of the manufacturing unit for Pre-recorded Audio Cassettes. By following precedent judgments and rejecting the Revenue's arguments, the court granted relief to the petitioners, highlighting the settled legal issues in the case. The respondents were directed to comply with the order by registering the contract, imposing duty, and releasing the goods within the specified timeline.