TATA CONSULTANCY SERVICE Vs. COLLECTOR OF CUSTOMS
CUSTOMS EXCISE AND GOLD(CONTROL) APPELLATE TRIBUNAL
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(1.) The question of law referred to this Court in the instant reference arising under Section 130(3) of the Customs Act is as under:
Whether, on the facts and in the circumstances of the case, placing of an Order for supply of "Word Processor" with the foreign supplies (Tata Inc., New York) does amount to a firm contract
(2.) The facts inter alia giving rise to the instant reference are that the Petitioner is rendering secretarial services to various Public Limited Companies Firms. It decided to import a "Word Processor" in the course of its said business. The import of Word Processor was allowed under an Open General Licence in the Import and Export Policy for the period April 1982 to March 1983 (in short 1982-83 policy) Appendix 2 of the 1982-83 policy set out a list of Capital goods which were allowed under open General Licence to actual users (industrial and non-industrial). In sub-Item (19) of Item 12 of the said Appendix 2 the "Word Processor" is specified. The Petitioner is an actual user (non-industrial).
(3.) Tata Inc., New York is a Company established inter alia for looking after procurement in USA of the goods required for all Tata concerns on a centralised basis so that best possible equipments at the minimum expenditure could be purchased. Tata Units have been obtaining their goods from USA from the said Tata Inc. The Petitioner forwarded its requirement for the Word Processor to Tata Inc. which after negotiation informed the Petitioner to open a letter of credit for US Dollars 70,000 to enable it to send the equipment. In accordance with the provisions of the Foreign Exchange Regulation Act, 1973 (in short 1973 Act) the Petitioner made an application to Grindlays Bank Plc. Bombay, which is an authorised dealer under the 1973 Act for opening an irrevocable letter of credit in favour of Tata Inc., New York for US Dollars 70,000 for covering the import of the said Word Processor. The full description of the equipment to be imported together with copies of telex messages exchanged between the Petitioner and Tata Inc. were submitted along with the said application for opening the irrevocable letter of credit. On February, 24,1983 the said Bank opened an irrevocable letter of credit in favour of Tata Inc., New York for covering the import of the said "Word Processor".;
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