9911796707
TMI Blog1988 (7) TMI 79X X X X Extracts X X X X X X X X Extracts X X X X ..... India. 2. The short facts necessary for the aforesaid determination are that the petitioner has set up a plant for manufacture of charge-chrome at Choudwar in the district of Cuttack within the State of Orissa and it has also an existing plant at Theruballi where ferro-chrome is being produced. The Government of India in the Department of Commerce issued a resolution declaring that in order to bridge the increasing deficit in the balance of trade and running down of exchange reserves, it has become necessary to step up the growth of export and accordingly Government have decided to implement a scheme to facilitate the setting up of 100% export oriented units and such units are entitled to certain concessions to enable them to meet the ri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the goods specified in the table when imported into India for the purpose of manufacture of articles for export out of India or for being used in connection with the production or packaging of goods for export out of India by 100% export oriented undertakings approved by the Board of Approvals, are exempted from the whole of the duty of customs leviable thereon under the First Schedule to the Customs Tariff Act, 1975 (Act 51 of 1975) and the additional duty, if any, leviable thereon under Section 3 of the Customs Tariff Act, 1975, subject to the conditions prescribed therein. The case of the petitioner, in brief, is that the petitioner has its export oriented undertaking duly approved by the Board of Choudwar and Theruballi producing charg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e as per the Import Policy for 1982-83 and no special approval was required to be issued in that regard. As the industry in question required constant energy for the purpose of the manufacture of charge-chrome and ferro-chrome and as there has been constant shortage of electricity within the State of Orissa, the petitioner made an application to the Government of India, Ministry of Industry, in the Department of Industrial Development to permit the petitioner to have a captive power plant of its own so that the energy generated from the said captive power plant can be consumed in the petitioner's 100% export oriented undertaking. The Government of India approved the petitioner's proposal for setting up of the captive power plant. In the let ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that by virtue of the orders of the Hon'ble Supreme Court, the power generating equipment imported as capital goods for the captive power plant have been allowed to be brought in by the Customs authorities free of import duty and, therefore, it is contended that there is no reason why the said facilities should not also be afforded in respect of coal which is a raw material for the captive power plant for generation of electricity. 4. The opposite parties have filed a counter affidavit sworn to by the Assistant Collector, Central Excise and Customs. The main stand taken in the counter affidavit is that coal cannot be considered to be a raw material or "consumables required for manufacture of goods" for the export oriented undertaking of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Government of India issued by the Ministry of Commerce, which has been annexed as Annexure-4 to the writ petition, clearly indicates that a 100% export oriented unit would imply an industrial unit offering for export its entire production excluding permitted levels of rejects and such a unit being approved by the Board pursuant to the application made by the entrepreneur. This being the scheme of the Government of India and the energy sought to be generated by the petitioner in the captive power plant not being meant for export and such a unit not having been approved by the Board to be a 100% export oriented unit will not be governed by the notification (Annexure-4) and the answer to the question, therefore, must be in the negative. 7. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pment imported for the captive power generation plant free of duty because the Government of India in the Ministry of Industry while permitting the petitioner to set up a captive power plant had clearly held :- "..............Government of India have decided to permit you to import the captive power generation equipment as capital goods for the 100% Export Oriented Unit to be set up at Choudwar (Orissa) for the manufacture of charge-chrome.............". In view of this specific decision of the Government of India, authorising import of captive power generation equipment as capital goods for the 100% export oriented unit, import of such equipment came squarely within item No. 1 of the table to the Notification 13/81-Cus., dated 9-2-1981 a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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