SUBHASH PHOTOGRAPHICS Vs. UNION OF INDIA

JUDGEMENT

(1.) Leave granted. Heard counsel for the parties.

(2.) These appeals arise from the common judgment and order of the Bombay High court in a batch of writ petitions. The question is whether the photographic machinery imported by the appellants falls under Customs Tariff Heading No. 98. 01. If it falls under it, it is entitled to a concessional rate of duty. If not, it is chargeable to a higher duty.

(3.) The Customs Tariff Act, 1975 was enacted by Parliament with a view to consolidate and amend the law relating to customs duties. It repealed the Indian Tariff Act, 1934 and Indian Tariff (Amendment) Act, 1949. Section 2 says that the rates at which duties and customs shall be levied under the Customs Act, 1962 are those specified in the First and Second Schedules. Section 3 levies additional duty equal to excise duty. Ch. 98 was introduced in the Schedule with effect from 28/02/1986. It relates to "project Imports; Laboratory Chemicals; Passengers Baggage, Personal Importation by air or post; Ship Stores". Ch. 98 provides a concessional rate of duty in respect of articles and items specified therein. Ch. Note (1 declares, "this Ch. is to be taken to apply to all goods which satisfy the conditions prescribed therein, even though they may be covered by a more specific heading elsewhere in this Schedule". In other words, if a particular article mentioned in Ch. 98 also falls under some other chapter/heading, still such item will be governed by Ch. 98 and not by that other chapter/heading. So far as photographic machinery is concerned, it is not disputed that it falls under Ch. 90 where the rate of duty is far higher. Ch. Note (2 which is of crucial relevance herein reads: