- (1.) The assessee imported horological machinery. It was imported to be installed in a watch-making factory. The import was treated as a project import within the meaning of Ch. 98 of the First schedule of the Customs Tariff Act and the goods were cleared under heading 98. 01.
(2.) To project imports an Exemption Notification dated 19-4-1985, as amended from time to time, applied. At the relevant time, such project imports were exempted from customs duty leviable thereon in excess of 20% ad valorem. The Notification added: "Nothing contained in this notification shall affect the exemption granted under any other notification of the government of India for the time being in force from the duty of customs specified in the said First schedule in respect of the goods referred to in this notification. "
(3.) There was another Exemption Notification, which was dated 28/2/1985 as amended on 1/6/1985, which granted exemption from customs duty to horological machines and testing equipments for manufacture or assembly of mechanical and quartz analog wrist-watches and parts thereof over and above 10% ad valorem.;