UNION OF INDIA Vs. LAFARGE UMIAM MINING PVT. LTD.

JUDGEMENT

(1.) This writ appeal is directed against judgment and order dated 13.08.2010, passed by the learned single Judge in WP(C)No. 198(SH) 2009, whereby, writ petition has been allowed, and decision of Board of Approval (for short BOA) dated 23.09.2004 (withdrawing the exemption granted earlier to the writ petitioner vide Board Resolution dated 31.05.2004 from payment of import duty), is quashed. Learned single Judge has further set aside the demand notice dated 08.04.2009, issued by the appellants, and restrained them from giving effect to the Board of Approval decision dated 23.09.2004.

(2.) Heard learned counsel for the parties and perused papers on record.

(3.) Brief facts of the case as stated in the writ petition are that the petitioner is a company incorporated under Companies Act, 1956, having its registered office at Hotel Polo Towers, Polo Grounds, Oakland Road, Shillong. The petitioner-company is a wholly owned subsidiary of Lafarge Surma Cement Ltd., a public limited company incorporated under the laws of Bangladesh. M/s Lafarge Surma Cement Ltd. (for short LSC) has set up an integrated cement manufacturing unit at Chhatak in District Sunamgonj of Bangladesh as there is no limestone available in Bangladesh. Limestone and shale required for manufacture of cement by LSC in its cement plant are extracted from the mines located at Nongtrai and Shella Villages in the State of Meghalaya, which is the only source of raw material for the cement plant in Bangladesh. The distance between cement plant in Chhatak, Bangladesh and mines in Meghalaya (India) is about 17 kilometers. The petitioner-company which holds mining leases, extracts limestone and shale from the mines, crushes and processes the limestone and exports the same to the cement plant of LSC in Bangladesh by a 17 kilometers long elevated belt conveyor (for short LEBC). Though the two establishments are physically located in two different countries, but the cement plant in Bangladesh, mines in India, and long belt conveyor across international border are parts of one integrated-cement unit. The Lafarge Surma Cement Ltd. (LSC) of Bangladesh obtained approval of the Secretariat of Industrial Approval (for short SIA) of the Government of India vide letter No. FCII:393(98)/471(98) dated 11.08.1998 to set up a 100% subsidiary company for the mining and export operations. The writ petitioner's (present respondent) case is that in the State of Meghalaya (India) under the flagship of petitioner-company (i.e. subsidiary company of LSC) manufacturing process of cement commences from mining and limestone and shale crushing the same so as to make it consumable for cement production through the continuous long belt conveyor system till the Indian Border for its destination at the manufacturing plant in Bangladesh. It has been stated by the writ petitioner in its petition that 7 kilometers of long conveyor belt system out of 17 Kilometers lies within the territory of India and remaining 10 kilometers lies within the limits of territory of Bangladesh. The stretch of land over which long conveyor belt passes through has been acquired by LSC. Thus, the entire project is an integrated cement manufacturing facility set up on a continuous stretch of projects land.