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TMI Blog1995 (6) TMI 25X X X X Extracts X X X X X X X X Extracts X X X X ..... ty of customs. The facts briefly are as follows :- The petitioner No. 1 Company is inter alia engaged in the manufacture of speciality chemicals used in oil industry in connection with oil exploration viz. Flow Improver under the trade name `Daitrolite'. In respect of the said chemical, respondent No. 1 from time to time offered diverse incentives to promote exports from the country. However, in September 1982 new Policy was introduced by Union of India and the incentives of duty free imports were also extended to deemed exports viz. supplies of diverse products by Indian manufacturer to projects financed by International Development Association or International Bank for Reconstruction and Development or bilateral or multilateral aided p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on, public notice came to be issued qualifying O.N.G.C.'s supplies as deemed exports with consequential benefits of duty free imports being available to Indian suppliers. It is the case of the petitioners that pursuant to the above Notification bearing No. 210/82 as amended and in view of the promises/representations/assurances made by the Government, petitioners entered into contracts with O.N.G.C. on September 9, 1986 for sale and supply of the above mentioned chemicals on the basis of duty free imports of the raw materials. For the import of the raw materials and for the manufacture of speciality chemicals to be supplied to the ONGC, the petitioner No. 1 Company applied and the respondent No. 1 acting upon the said representation, issued ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... suant to Notification No. 210/82 under which full exemption was granted from payment of customs duty for five years i.e. upto September 10, 1987 and since the goods were fully exempted when they entered into territorial waters of India prior to September 30, 1986, there was no question of the Company being asked to pay customs duty at 25% ad valorem. Shri Bharucha contended that the rate at which imports are chargeable to customs duty ought to be determined under Section 15 of the Customs Act provided such imports are not wholly exempted when the goods entered into territorial waters of India. Shri Bharucha contended that in the present case the goods entered into territorial waters of India prior to December 30, 1986 and therefore the impu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Notification No. 210/82 granted exemption to import of raw material used for manufacture of chemicals to be supplied to projects financed by IBRD/IDA or to goods to be supplied to O.N.G.C./Oil India etc. The public interest was to encourage manufacture of goods indigenously for effecting supplies to essential Indian enterprises as a part of the Scheme which was Project Based. In this connection, it was contended that since exemption under the said Notification No. 210/82 was a part of Project Based Exemption Scheme, the judgment of the Supreme Court in Kasinka Trading v. Union of India reported in 1994 (74) E.L.T. 782 (SC) = A.I.R. 1995 S.C. 874 has no application. We do not find any merit in the above contention. In Kasinka Trading (supr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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