1984 (2) TMI 241 - HC - Customs

Summary

Issues:
1. Interpretation of the term "actual user" under the Import Policy, 1978-79 for cinematographic films.
2. Determination of whether distributors and exhibitors of films qualify as actual users under the Import Policy.

Analysis:
The judgment of the High Court of Bombay dealt with the interpretation of the term "actual user" under the Import Policy, 1978-79 concerning cinematographic films. The petitioners, who were distributors and exhibitors of films, sought a mandamus to compel the first respondent to import foreign feature films for them. The petitioners had applied for the import of films, declaring the intended use for distribution and exhibition in their establishments. However, the first respondent informed them that films could only be imported for distribution by itself and not for distribution by others. The petitioners approached the second respondent for resolution, but the matter remained unresolved, leading to the filing of the petition.

The court examined the definition of "actual user" under the Import Policy, which required that the imported item be for the applicant's own use and not for business or trade. The petitioners argued that as registered commercial establishments under the Bombay Shops and Establishments Act, engaged in the business of film distribution and exhibition, they qualified as non-industrial actual users. However, the court held that the exhibition and distribution of films constituted a business or trade, placing the petitioners outside the scope of the "actual user" definition.

Furthermore, the court analyzed sub-clause (b) of the Import Policy, which defined a non-industrial actual user of films as a commercial establishment holding a license for at least three years under local laws related to film exhibition. As the petitioners did not meet this specific criterion, they were deemed not to be actual users of films under the Import Policy. Consequently, the court dismissed the petition, ruling that the petitioners were not entitled to require the first respondent to import films for them. The judgment concluded by dismissing the petition with costs in two sets and discharging the rule.