- (1.) THESE appeals, by special leave have put in issue the judgment of the Division Bench of the High Court of Madras, dated 28/01/1988 setting aside the judgment of a learned single Judge dated 7/09/1987 in a batch of Writ Petitions.
(2.) THE short question which requires our consideration is: Whether in the facts and circumstances of this case the appellant is entitled to the benefit of the Exemption Notification No. 62/83, dated 1-3-83 issued by the Government of India in exercise of the powers under Section 25(1) of the Customs Act, 1962? THE question arises in the following circumstances. 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 customs 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 1-3-1983. 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 1-3-1983 vide which the auxiliary duty on item 84.66, besides some other items, had been reduced to 20 Per Cent . 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. Hence, these appeals. We have heard learned counsel for the parties.
(3.) TARIFF 84.31 reads as follows :- JUDGEMENT_228_SCALE1_2000Html1.htm Item 84.66 reads thus :- JUDGEMENT_228_SCALE1_2000Html2.htm "Provided these are imported (whether in one or in more than one consignment) against one or more specific contracts which have been registered with the appropriate Custom House in the manner prescribed by Regulations which the Central Board of Excise and Customs may make under Section 157 of the Customs Act, 1962 and such contract or contracts has or have been so registered before any order is made by the proper officer of Customs permitting the clearance for home consumption or deposit in a warehouse of items, components or raw materials." Notification 61/83, gave benefit of reduction in the rates of Auxiliary Duty @ 20 Per Cent on certain specified goods. Items 11 and 12 of that Notification read thus :- "11. Goods falling under Heading No. 84.31 but excluding paper making machinery and component parts thereof. 12. Goods falling under Heading No. 84.66." ;