TATA EXPORTS LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) THIS petition concerns the classification of Dextrose Anhydrous. Forty M. Ts. thereof were imported by the petitioners. According to the petitioners, the said goods are an organic compound classifiable under Chapter 29. 01/45 of Customs Tariff Act and Customs duty at the rate of 60% is payable thereon. According to the respondents, they are classifiable under Chapter 17. 02 as a sugar in solid form liable to duty at the rate of 100%.

(2.) THE petitioners through their advocates wrote to the respondents on 6th December 1982 asking that the said goods be classified under Chapter 29. 01/45 as an organic chemical. The said goods arrived in Bombay on 17th December, 1982 and the petitioners through their advocates wrote to the respondents reiterating the said contention. They also requested that no countervailing duty should be charged in respect of the said goods in view of Excise Exemption notification No. 104/82. On 21st December 1982 this writ petition was filed. On 29th December 1982 the petitioners through their advocates wrote to the respondents asking that Customs duty be levied on the said goods at the rate of 60% and for issuance of detention certificate. They enclosed the material that showed that Dextrose Anhydrous was an organic chemical which was used as a drug intermediate. In this behalf, on 3rd January, 1983, a bill of entry was sent to the assistant Drug Controller of the respondents for a no objection certificate. He sent samples for examination and a report thereon was made by Italab Pvt. Ltd. which showed that Dextrose anhydrous fell within the classification of the Indian Pharmacopoeia, 1966. On 21st January, 1983 the Assistant Drug Control, accordingly, stated that the petitioners should be permitted to mark the said goods with the words "i. P. pharm STD. " and the said goods could thereafter be released to the petitioners. This was done on 27th January, 1983. The Assistant Collector of customs, however, classified the said goods under Chapter 17. 02 and levied Customs duty at the rate of 100% thereon as also additional duty. On 9th February 1983 the petition was admitted and an interim order was passed permitting the clearance of the said goods upon the conditions therein set out.

(3.) CHAPTER 29 of the Customs Tariff Act applies to, inter alia, separate chemically defined organic compounds, whether or not containing impurities, and provides for a 60% rate of duty. Chapter 17. 01 [note : This should read 17. 02] refers to other sugars in solid form, including glucose and lactose, and provides for a rate of duty of 100%.