Deciding Authority : Supreme Court
Date of Judgement: 20/01/2000
Bench : DR. A.S. ANAND, CJ & S. RAJENDRA BABU & R.C.LAHOTI
Facts : The appellant imported certain items of machinery pursuant to a specific contract registered with the Customs Authorities for import of machinery falling under Item 84.66 of the Customs Tariff Act, 1975. The appellant has admittedly enjoyed the concession pursuant to that registered contract in the matter of payment of basic custom duty as well as additional duty. The appellant after having enjoyed that benefit also claimed benefit of total exemption from payment of Auxiliary Duty under Notification 62/83, Customs, dated 13.1983. According to the appellant, since Notification 62/83 was issued to grant total exemption from Auxiliary Duty on 19 items in view of GATT agreement, the appellant was also entitled to its benefit since the machinery imported by him fell under one of the 19 items. According to the Revenue, however, the appellant was not entitled to claim benefit of Exemption Notification 62/83, dated 1.3.1983 having imported the machinery pursuant to the specific contract registered under heading 84,66 and that the appellant had to bear the auxiliary duty to the extent given in Notification 61/83, Customs, dated 1.3.i983 vide which the auxiliary duty on Item 84.66, besides some other items, had been reduced to 20%. the learned Single Judge, hearing the Writ Petition took note of both the above noticed Notifications and came to the conclusion that the appellant was entitled to receive benefit of Exemption Notification 62/83 and not of Notification 61/83. The Division Bench, however, accepted the appeal filed by the Revenue and reversed the judgment of the learned Single Judge.
Judgement : A perusal of the Notification 61/83 shows that against Item No. 12, all goods falling under tariff No. 84.66 have been subjected to the reduced Auxiliary Duty at 20% whereas in the Notification No. 62/83, no exemption has been granted in respect of goods falling under Tariff Item 84.66. (a) (b) (c) Machinery including prime-movers. Instruments, apparatus and appliances. Control gear and transmission equipment. Auxiliary equipment as well as all components (whether finished or It is not disputed before us that benefit in payment of basic duty and additional duty, in terms of Notification No. 268/76, dated 2.8.1976, has already been obtained by the appellant for importing the machinery as per a contract registered with the Customs Authorities under Tariff Item 84.66. Having so obtained that benefit by claiming the imported machinery to be covered by tariff Item 84.66, it was not open to the appellant later on to canvass much less claim that the machinery in question is covered by tariff Item 84.31, for receiving the benefit of total exemption under Notification 62/83 and that it is not liable to pay auxiliary duty at the reduced rate of 20% on goods falling under tariff item 84.66 under Notification No. 61/83. Whether or not the specific machinery imported by the appellant is also covered by item No. 84.31, under the circumstances, was irrelevant and apparently a devise to claim ’unavailable’ benefit under Notification 62/83.
In the established facts and circumstances of the case, the appellant was not entitled to the benefit of total exemption from payment of auxiliary duty under Notification 62/83 as rightly held by the Division Bench.
Held : Appeal Dismissed .
Tejasv Anand , IV th Year , AMITY LAW SCHOOL,DELHI.
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