R.C.LAHOTI - (1.) IN exercise of power conferred by Section 25 of the Customs Act, 1962 to grant exemption from payment of duty of customs leviable under the Act, the Central Government issued Notification No. 71/85 dated 17-3-1985 which reads as under :- "IN exercise of the powers conferred by sub-section (1) of Section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the goods falling under the Heading No. 84.66 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), when imported into INdia for the industrial plants or projects specified in Column (2) of the Table hereto annexed, from so much of that portion of the duty of customs leviable thereon which is specified in the said First Schedule, as is in excess of the amount calculated at the rate specified in the corresponding entry in Column (3) of the said Table, subject to the condition that the importer produces a certificate from an officer not below the rank of a Joint Secretary to the Government of INdia in the Ministry administratively concerned with the said industrial plants or projects that the goods in question required for the said industrial plants or projects and recommending grant of the above exemption. JUDGEMENT_306_JT6_1999Html1.htm
(2.) 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." 2. On 19-4-1985 Notification No. 133/85 was issued which reads as under : "In exercise of the Powers conferred by sub-section (1) of Section 25 of the Customs Act; 1962 (52 of 1962), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the goods falling under the Heading No. 84.66 of the First Schedule to the Customs Tariff Act 1975 (51 of 1975) when imported into India for Power Projects (including gas turbine Power Projects), from the whole of the duty of Customs leviable thereon which is specified in the First Schedule, subject to the condition that the importer produces a certificate from an Officer not below the rank of a Joint Secretary to the Government of India in the Ministry administratively concerned with the said Projects that the goods in question are required for the said projects and recommending grant of the above exemption." On 1-5-1986 came to be issued Notification No. 306/86 which reads as under :- "In exercise of the powers conferred by sub-section (1) of Section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby directs that each of the notifications of the Government of India in the Ministry of Finance (Department of Revenue), specified in Column (2) of the Table hereto annexed, shall be further amended in the manner specified in the corresponding entry in Column (3) of the said Table. JUDGEMENT_306_JT6_1999Html2.htm Notification No. 133/85 (as amended by Notification No. 306/86) was superseded by a fresh Notification No. 67/87 dated 1-3-87 which reads as under :- "In exercise of the powers conferred by sub-section (1) of Section 25 of the Customs Act, 1962 (52 of 1962), and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 133/85-Customs, dated the 19/04/1985, the Central Government being satisfied that it is necessary in the public interest so to do, hereby exempts the goods specified in Column (2) of the Table hereto annexed and falling under Heading No. 98.01 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), when imported into India, from so much of that portion of the duty of customs leviable thereon which is specified in the said First Schedule as is in excess of the amount calculated at the rate specified in the corresponding entry in Column (3) of the said Table. JUDGEMENT_306_JT6_1999Html3.htm Explanation :- For the purpose of this notification, the expression power projects (including gas turbine power projects)' shall mean such projects whose output or end-product is power, but shall not include captive power plants set up by projects engaged in activities other than power generation."
(3.) THE notification dated 1-5-1986 has been the bone of contention and would hereinafter be referred to as amending notification. THE respondents' contention before the High Court and also before this Court has been that the amending notification and the explanation appended to Notification No. 67/87 are violative of Article 14 of the Constitution. M/s. Indian Charge Chrome Ltd., the respondent before us is a public limited company and is a 100 per cent export oriented unit of charge chrome. The said respondent would hereinafter be referred to as 'the company', for short. In the year 1984 it entered into two contracts respectively with M/s. Gotaverken Energy Systems of Sweden and M/s. Asea Stal for the supply of power generation equipment for setting up a power plant so as to generate electricity meant for captive consumption of the company and its sister concern. On 28-1-1986, the respondent moved an application before the Assistant Collector of Customs. Paradeep Port, Paradeep for registration of the two contracts abovesaid under the Project Import (Registration of Contract) Regulations, 1965 so as to enable being assessed for exemption under Tariff Item No. 84.66 of the First Schedule to the Customs Tariff Act, 1975 read with Notification No. 71/85 dated 17-3-1985. On 7-2-1986 the Assistant Collector of Customs informed the respondent company that its contract with M/s. Gotaverken Energy Systems, Sweden was allowed registration under the 1965 Regulations by the authority. Vide letter dated 20-3-1986, the Assistant Collector sought for certain clarifications from the respondent with respect to its contract with M/s. Asea Stal. The requisite information was provided by the respondent. On 17-8-1987, the respondent company was informed that in view of the exemption notification having been amended by inserting an explanation thereto, the captive power project of the respondent was not entitled to exemption from payment of duty and therefore the prayer for registration of the contract entered into by the respondent with Asea Stal was being rejected and also the earlier registration of the respondent's contract with M/s. Gotaverken which was allowed earlier on 7-2-1986 was being cancelled.;