CHAIRMAN, NATIONAL BOARD OF REVENUE Vs. BEXIMCO INFUSIONS LTD.

JUDGEMENT

(1.) This petition by the Chairman, National Board of Revenue and other related officers (we are surprised to see the Member (Operations) Board of Investment (No. 4) among them) is from judgment and order dated 12 January 1994 passed by a Division Bench of the High Court Division making the Rule absolute in Writ Petition No. 3693 of 1992.

(2.) This case, we find, is a typical example of what may be called, bureaucratic foolhardiness which is often complained of as a disincentive for the would-be investors in this country despite the much-vaunted Government policy of favourable investment climate and opportunity and strong legislation in their behalf such as the Investment Board Act,1989 (Act No. XVII of 1989) etc.

(3.) Facts of the case are simple and undisputed. The writ-petitioner-respondent company upon getting necessary approval from the Board of Investment under the aforesaid Act for setting up an Intravenous Fluid Industry (IV Fluid) for producing a life-saving medicine, with foreign collaboration (Dutch and German) imported entire machineries from West Germany which arrived at the Chittagong Port all by 7-2-1991. The company availed of the benefit of payment of customs duty at the rate of 10% ad valorem and of exemption from payment of sales tax and development surcharge for the said machineries under SRO dated 25-7-1990 upon furnishing a certificate as required and prescribed under the said SRO from the proper authority of the Board of Investment. It is important to remember that the condition for availing the benefit under the said SRO is that the importation of machineries and parts must be with the approval of competent authority for the establishment of industry or for balancing, modernisation, replacement or extension of an existing industry and must be accompanied by a certificate from the proper authority in that behalf.