- (1.) The Court : The subject matter of this writ petition is the interpretation of a notification, being notification No.125 /86-CUS dt. 17.2.86 (hereinafter referred to as the said Notification) .The said notification in so far as it is material 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 specified in column (2) of the Table hereto annexed and falling under Chapter 39 or 73 or 84 or 90 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), when imported into India for use in processing/Packaging of food articles, from- 788 SEC.XVI.CH.84-MACHINERY & MECH. APPLIANCES-CUS (a) 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 of 35 per cent ad valorem ; and (b) The whole of the additional duty leviable thereon under section 3 of the said Customs Tariff Act.
(2.) In the table to the said notification against serial No.20 is mentioned "Automatic Bottle Labelling Machine". The petitioner imported a fully automatic Bottle Labelling Machine for labelling beer bottles. In the Bill of Entry filed for clearance of the said machine, the machine was classified under Tariff heading No. 8422.20 and a claim for exemption of duty under the said notification was made. On 6th September 1990 the respondent No.1 rejected the petitioner's claim for exemption under the said notification and assessed a sum of Rs. 43,71,890/- as the duty payable in respect of the said machine. A detailed representation was made by the petitioner to the respondent No.1 in support of its claim for exemption under the said notification. The representation was replied to by the respondent No.1 by his letter dt. 23.11.90 in the following language :- "Your contentions for extending the duty concession under Notification No. 125/86 dt. 7.12.86 have been considered but do not appear acceptable. However if you so desire, you may appear for personal hearing in this regard so that a proper decision can be arrived at and a suitable order of Assessment could be issued."
(3.) Thereafter the petitioner filed this writ application challenging the refusal of the respondents to grant exemption under the said notification in respect of the said machine to the petitioner. The field of dispute is narrow. In fact there appears to be no dispute as to the basic facts of the case. The respondents have not disputed that the said machine is classifiable under Tariff Heading No. 8422.20. It is also not disputed that the said machine would be covered by item No. 20 of the table to the said notification. However, issue is joined on the question whether the said machine has been imported "for use in processing/packaging of food articles" within the meaning of the said notification.;