9911796707
TMI Blog1993 (12) TMI 64X X X X Extracts X X X X X X X X Extracts X X X X ..... ents of Mr. S. Ramasubramaniam Advocate for the petitioner, and of Mr. K. Illias Ali Additional Central Government Standing Counsel on behalf of the respondents and having stood over for consideration till this day the court made the following order :- The petitioner is a partnership firm carrying on business in printing and publishing. As part of its extension programme, it intended to import colour offset printing machine with pre-press register system and other such technically advanced accessories and the Import Export Policy. The above proposal for a new project was submitted to the third respondent so that the machinery can be imported under the scheme "Project Import". If the proposal is approved the petitioner can avail of concess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Bank Guarantee for 50% of the disputed amount. 2. In the counter affidavit filed by the respondents 1 and 2 it is pointed out that the petitioner wanted registration in respect of five items of machinery and the fifth item related only to graphic art films in various sizes. The dispute in this case relates only to the graphic art films. It is admitted that the third respondent had issued a certificate on 1-11-1985 recommending the benefit of "Project Import" for all the above items. Respondents 1 and 2 have rejected the claim of the petitioner for registration of the graphic art film under the "Project Import" Scheme on the ground that the Tariff Heading 84.66(i)(d) permits raw-materials for manufacture of items mentioned therein wherea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r which the graphic art films is absolutely necessary. In other words, it is argued that the word `maintenance' is not confined to the popularly understood meaning of post-erection maintenance of the machines. The above arguments of the learned counsel for the petitioner suggests that the import of graphic art films can either be brought under Tariff Heading 84.66(i)(d) or under the Tariff Heading 84.66(ii). I have carefully perused the above two items in the Customs Tariff Act. Tariff Heading 84.66(i)(d) says, "(d) Auxiliary equipment, as well as all components (whether finished or not) or raw materials for the manufacture of the aforesaid items and their components, required for the initial setting up of a unit, or the substantial expan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hic art films to test-work the machinery. After all, the petitioner has not sought to import a large quantity of graphic art films. The quantity sought to be imported seems to suggest that it was mainly intended to test-work the machinery after erection work. This is precisely the reason why they have imported graphic art films of all sizes so that the machinery can be test worked with all sizes of graphic art films. 4A. The authorities while rejecting the claim of the petitioner have stated that the graphic art films are used for the purpose of helping in their printing activity in bringing home the final products. It is true that any amount of materials for test working a machinery may also be used for producing the final product. But w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under Heading No. 84.66 of Section XVI of the Customs Tariff Act, 1975 (51 of 1975)". As against this argument it is contended on behalf of the respondents 1 and 2 that the question of payment of duty and the availability of a concession is a matter for interpretation by respondents 1 and 2 and it is not for the third respondent. In any event the third respondent's certificate is not binding on the Customs Authority. In support of his argument Mr. Rama Subramaniam has relied on the Judgment of the Calcutta High Court in Asiatic Oxygen Ltd. v. Assistant Collector of Customs, 1992 (57) E.L.T. 563 (Cal.) = 1993 (49) ECR 215 (Calcutta). In that case, the question was whether the import of gas cylinders over the phased implementation of a pro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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