SURESH COLOUR LABS Vs. UNION OF INDIA

JUDGEMENT

(1.) IN these writ petitions common questions are raised challenging the orders passed by customs authorities on the basis that Tariff Heading 98.01 does not apply to the photographic machinery imported by the petitioners in view of the definition of "industrial plant" in the Project Imports Regulations, 1986 which came into force on April 3, 1986. IN three of the writ petitions which were filed in 1986 long before the other petitions were filed, some additional contentions are advanced resting on an interpretation of the said Regulations and the doctrine of promissory estoppel.

(2.) THE three writ petitions filed in 1986, are at the instance of the same person with reference to the same import. THE petitioner is a partnership ........ manufacture of colour film, processing and printing and enlargement of the same as a Small Scale Industry. It placed an order for import of two mini colour laboratories from Japan, one for their factory in Madras and the other for their branch in Madurai at a total cost of Rs. 15, 62, 000/- (c.i.f. value) in October 1985. THE Letters of Credit were opened on 23-1-1986 and the dates of shipment were 31-3-1986 and 2-4-1986. THE goods arrived at Madras Port in the third week of April, 1986. THE petitioner applied to the Director of Industries who was the Sponsoring Authority for recommendation on 22-3-1986. THE same was granted on 24-4-1986. But on 3-4-1986, the new Project Imports Regulations, 1986 were issued under Customs Notification No. 230/86 dated 3-4-1986 and they came into force on that day. THEy defined the expression "industrial plant" so as to exclude from its scope photographic studios, photographic film processing laboratories, photocopying studios and certain other establishments. Applying that definition to the word 'Industrial plant' occurring in Tariff Heading No. 98.01 in the First Schedule to the Customs Tariff Act, 1975, the Customs authorities refused to assess the duty under the heading and held that duty should be paid under Tariff Heading No. 90.10. THE aggrieved petitioner has filed three writ petitions. In W.P. 6477 of 1986, the prayer is for issue of a Certiorarified Mandamus to quash the order of the Assistant Collector of Customs dated 24-4-1986 in S49/132/86 Group B and direct him to register the contract in respect of photographic film printing and processing Machine Model No. FUJI Mini Lab 27 and extend the benefit of concessional duty of 55%. In W.P. 6478 of 1986 the prayer is for a declaration that Clause 3AI of the Project Import Regulations, 1986 contained in Customs Notification No. 230/86 is ultra vires the Constitution of India. THE prayer in W.P. 6479 of 1986 is the same as in W.P. 6477 of 1986 with respect to the photographic printing and enlarging Machine Model No. QSS 603.

(3.) NECESSARILY the provisions of the Customs Act and the Customs Tariff Act have to be read together in order to consider the matter in the proper perspective. I have already referred to Section 12 of the Customs Act Section 15 of the Customs Act prescribes that the rate of duty and tariff valuation applicable to the imported goods shall be the rate and valuation in force in the case of goods entered for home consumption under Section 46 on the date on which a bill of entry in respect of such goods is presented under that Section. As per the proviso, if a bill of entry is presented before the date of entry inwards of the ship, the bill of entry shall be deemed to have been presented on the date of such entry inwards. It is not necessary to refer to the remaining parts of the section in this case. Section 25 of the Customs Act: enables the Central Government to grant exemptions from payment of duty if it considers necessary in the public interest to do so. Section 157 of the Customs Act empowers the Central Board of Excise and Customs constituted under the Central Boards of Revenue Act, 1963 to make Regulations consistent with the Act and the rules and generally to carry out the purposes of the Act without prejudice to any power contained elsewhere in the Act.