MYSORE PETROCHEMICALS LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) The short question that falls for consideration in this writ petition filed under Article 226 of the Constitution of India is: Whether the petitioners are entitled to claim exemption from payment of additional duty under Sec. 3(1) of the Customs Tariff Act, 1975 (the Act of 1975 for short).

(2.) Few facts to be noticed and adverted to decide the question are these. The Mysore Petrochemicals Ltd., petitioner-1, hereinafter referred to as the petitioner-Company is a Joint Stock Company incorporated under the Companies Act, having its registered office at 26/11, Sankey Road, Bangalore. Petitioner-2 is the Secretary and Shareholder of petitioner-Company.

(3.) The petitioner-Company manufactures among other things phthalic anhydride (finished product for short). It requires raw.material called 'Orthoxylene' to manufacture finished product. The raw-material is manufactured in India by Indian Petro-chemicals Corporation Limited, Baroda (I.P.C.L. for short). The manufacturers of the finished product including the petitioner-Company are five in number in the Country. The production of raw-material falls far short of the requirement of the manufacturers. The deficit is imported from outside the Country under import licences (Open General Licence) by the manufacturers.