BRITISH MACHINERY SUPPLIES CO Vs. UNION OF INDIA

JUDGEMENT

(1.) This appeal by special leave is in challenge of an order passed by the Government of India, in exercise of their revisional power under the Customs Act, 1962 (for short the Act). As per the impugned order Government annulled the order passed by the appellate Collector of Customs in favour of the appellant on 6-12-1978.

(2.) Appellant then filed a statutory appeal before the appellate Collector of Customs who allowed the appeal holding that the goods imported were not for domestic sewing machines and as such they were classifiable under item 84.41 (1) of the Schedule. Thus the appellant became entitled to refund of the amount paid in excess. But appellant failed to get the refund applied for, in spite of pursuing the applications filed for that purpose. So a writ petition was filed in the High Court of Delhi for appropriate directions. Notice was served on the Central Government. They proposed to review the order for which a notice was given to the appellant to show cause why it should not be reviewed. Appellant submitted its detailed reply. Central Government after hearing the appellant passed the impugned order.

(3.) Appellate Collector concurred with the importers's stand that the components were intended for industrial sewing machines on the strength of a variety of reasons and on its own satisfaction when the difference was demonstrated before him, during the time of hearing. He noticed that "the rotating hook in the industrial machine had higher speed than the domestic sewing machine and if the rotating pin of the industrial sewing machines were to be attached to the domestic sewing machines, it would not withstand the speed and would break." Appellate Collector, therefore, was convinced that the hooks imported by the appellant were not for domestic sewing machine and were "Solely and principally for the use in machines operated with more than 1/4 H.P. and as such are classifiable under I. C. T. 84 41 (1)"