SOLAR PESTICIDES PVT LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) THE 1st petitioner Solar Pesticides Private Limited is a Company registered under the provisions of the Companies Act, 1956. The 2nd petitioner is the Managing Director of the 1st petitioner. The 1st petitioner operates under the trade name of 'solar Syndicate'. The name of the petitioners was originally Hypro Pesticides Private Limited. After the filing of the petition the name has been changed to Solar Pesticides Private Limited and the petition has been accordingly amended.

(2.) THE petitioners manufacture, inter alia, Copper Oxychloride, a chemical extensively used as a fungicide for the treatment of agricultural crop. The petitioners have their factory at Bulsar which is registered as a Small Scale Industry. The product manufactured by the petitioners is also registered by the Insecticides Board, Faridabad, for the manufacture of Copper Oxychloride. The petitioners require as one of the raw materials copper scrap for the manufacture of Copper oxychloride. The petitioners regularly import copper scrap for use in their factory at Bulsar for the anufacture of Copper Oxychloride.

(3.) UNDER the Customs Notification No. 122 of 1978 dated 21-6-1978, as amended from time to time a concessional rate of duty is levied on the import of copper scrap which is used for the manufacture of chemicals. While availing of this concessional Customs duty the petitioners furnished an end-use bond in favour of the Customs Department duly guaranteed by the petitioners' Bankers. This bond is for the purpose of ensuring that the copper scrap imported by the petitioners is used for the manufacture of Copper Oxychloride. Once the copper scrap is so consumed a Chartered Accountant's certificate regarding such consumption along with an affidavit is furnished before the Customs Department. The Customs Department after verification cancels the bond.