COLLECTOR OF CUSTOMS Vs. UNION CARBIDE INDIA LIMITED

JUDGEMENT

(1.) This appeal is by the Collector of Customs and is directed against the judgment and order passed by a learned single Judge of this court on 31st January, 1977.

(2.) The respondent, Union Carbide India Limited made an application under Article 226 of the Constitution, inter alia, for writs of mandamus directing the respondents (who are the appellants before us) to assess and collect customs duty on the manganese ore of the respondent under tariff item No. 26 and not under tariff item No. 28 as sought to be done by the appellants. The learned Judge of the court of first instance allowed the said application and made the rule absolute and the appellants were directed to assess and collect customs duty on the manganese ore under item No. 26 of the tariff classification. Being aggrieved by the said order of the learned Judge of the court of first instance the appellants have preferred this appeal.

(3.) The respondent is the manufacturer of diverse goods including dry cell batteries, torches and allied products. For its dry batteries, the respondent requires high grade manganese ore (battery grade) which is imported from Gabon in Africa. Such high grade manganese ore is not available in India and is generally imported from other country, namely, West Africa for the manufacturing of such dry cell batteries. At the material time, June, 1975, manganese ore was a canalised item and the Minerals & Metals Trading Corporation of India Limited, a Government of India Undertaking was the canalising agency. For import of such manganese ore the procedure for importation of manganese ore since 1971 has been that the Chief Controller of Imports issues release orders on the basis of which indents are placed by the consumers with the, said Minerals & Metals Trading Corporation of India Limited (hereinafter referred to as M.M.T.C.). On the basis of such indents the M.M.T.C. floats tender and effects the imports which are sold to the ultimate consumers sometimes on high seas by transfer of shipping documents.