M.L. Shrimal, J. - (1.) PETITIONER No. 1 is a public limited company, incorporated under the Indian Companies Act, 1880 and petitioner No. 2 is its shareholder, The Company has a number of industrial establishments at various places in India. The Company owns a unit known as M/s. Sriram Rayons, located at Sriram Nagar, Kota which manufactures "Rayon Tyre Cord Fabric", "Rayon Tyre Yarn" and "Rayon Tyre Coud" and auxiliary products, such as Sulphuric Acid, Carbon -di -sulphide, etc.
(2.) THE case of the petitioner company is that for the purpose of manufacturing "Tyre Cord Fabric", ' Tyre Yarn" or "Tyre Cord", the raw material used is "Tyre Cord Crade Wood pulp". The technical know -how of the wood pulp is only with the United States of America. The "Tyre Cord wood pulp" or any other like product, which could be used in the manufacture of "Tyre Cord Fabric", is not produced or manufactured in India and the petitioner is a required to import the same. The petitioner imports the above noted item, spare parts and machinery from the United States of America. They are received through Bombay port. Yellow bills of entry are filled up and assessments are made at Bombay. The wood pulp is transferred from Bombay to Kota and is stored in the private custom bounded warehouse, situated in the petitioner's factory, in accordance with the provisions of Section 58 of the Customs Act, 1962 (Act No. 52 of 1962). The wood pulp is cleared for home consumption by submitting green bill of entry and the duty is paid through PLA.
(3.) UNDER the Customs Act, 1962 (in short the Act), goods imported into India are subject to levy of duty of customs at the rates specified under the Customs Tariff Act, '975 ( Act No. 51 of 1975). The charging section is Section 12 of the Act. Section 14 deals with valuation of goods for the purpose of assessment.;