SUBHASH PHOTOGRAPHICS Vs. UNION OF INDIA

JUDGEMENT

(1.) THE question for determination in this batch of writ petitions is whether the photographic machineries imported by the petitioners fall under tariff heading No. 98. 01 and are entitled to the benefit of concessional rate of duty applicable to goods falling under the said heading.

(2.) THE facts relevant for the purpose of determination of the controversy in these cases being identical, the facts of one of the cases stated to be of representative type viz. , Writ Petition No. 27 of 1990 are being stated. The petitioner in this case is a partnership firm which carries on the business of developing and processing of colour photo films. For the purpose of its business, it imported from Singapore certain photographic machineries. These photographic machineries, when imported, were subject to levy of duty under the Customs Act, 1962 read with Customs Tariff Act, 1975. There is no dispute in this regard. The controversy is only in regard to the tariff heading under which these goods would fall and the rate of duty.

(3.) PRIOR to 28th February 1986, the relevant heading of the Tariff Act, 1975 was heading No. 84, 66, which provided for levy of duty at a concessional rate of 40% on import of machineries required for initial setting up of a unit or substantial expansion thereof, popularly referred to as "project Import". The availability of the benefit of lower rate of duty under this heading was, however, subject to fulfilment of certain conditions. One of the conditions was that the goods in question should be imported against one or more specific contracts, which had been registered with the appropriate Customs House in the manner prescribed by the Regulations, which the Central Board of Excise and Customs might make under section 157 of the Customs Act. The aforesaid heading No. 84. 66 read as under