9911796707
TMI Blog2001 (7) TMI 144X X X X Extracts X X X X X X X X Extracts X X X X ..... a bond for a sum of Rs. 1,98,55,000.00 and also paid a sum of Rs. 94,542-00 towards 5% of C.I.F. value (Cost, Insurance and Freight Value), on 15-9-1993 itself. 2.As per Regulation 3(a) of the Regulations, an "Industrial plant" is defined as under : 3(a) Regulation : 'Industrial plant' means as industrial system designed to be employed directly in the performance of any process or series of processes necessary for manufacture, production or extraction of a commodity, but does not include - establishments designed to offer services of any description such as hotels, hospitals, photographic studios, photographic film processing laboratories, photocopying studios, laundries, garages and workshops; or a single machine or a composite machin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nuals and Extenders" 6.However, referring to a letter dated 11-4-1994 of the respondent clarifying that the equipments like Video Cameras, Professional Video Recorders, Video Editing Systems, Microphones required for setting up of a Video Studio are treated as 'service plants' under sub-clause (i) to Regulation 3(a) of the Regulations, the request of the petitioner dated 31-5-1994 for importing the materials/machineries, referred to above, was rejected by proceedings of the respondent dated 5-7-1994 requiring the petitioner to pay a duty at the rate of 98% as applicable to the 'service plants', instead of duty at the rate of 37.50% as applicable to the 'industrial plants' as per the Notification Nos. 90/94-Customs, dated 1-3-1994 and 91/94 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tting the petitioner to act upon, is arbitrary and unreasonable; and in any event, since the impugned machineries are to be used for the performance of any process or series of processes necessary for manufacture of a distinct product, which, admittedly falls within the definition of an 'industrial plant', the respondent is not entitled to reject the request of the petitioner for importing the machineries mentioned in their letter dated 31-5-1994. 8.Per contra, Mr. H. Sundaram, learned Counsel for the respondent contends that, as per the letter dated 11-4-1994, the respondent has clarified that importing equipments like Video Cameras, Professional Video Recorders, Video Editing Systems, Microphones required for setting up of a Video Studio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are excluded from the category of 'service plants' and as a result, what was included in the category above, stands excluded in view of the explanation and included as 'industrial plant' and therefore, the petitioner's machineries which are meant for manufacture, production or extraction of a commodity, namely, the end-product being rock steady pre-recorded film in negative format, is exempted from the category of 'service plant' and included as 'industrial plant'. 10.3.That apart, the petitioner establishment had already registered their integrated project contract, which, provides for performance of any process or series of processes that are necessary for manufacturing a distinct commodity, referred to in the very contract. Therefore, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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