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TMI Blog1997 (3) TMI 189X X X X Extracts X X X X X X X X Extracts X X X X ..... claimed the benefit of Notification No. 125/86 and Notification No. 87/88 for auxiliary duty. The Assistant Collector of Customs found that the importers are operating in area of drugs and pharmaceuticals and they had imported the goods under provisions of Appx. 6(5) which was applicable to a R & D unit. The claim for the benefit under Sl. No. 19 of the table annexed to the Notification No. 125/86 exempted to Gas and Vacuum packaging system for flexible packages. The body of the Notification also states that it exempt the goods specified in column 2 of the Table hereto annexed and falling under Chapter 84 or Heading No. 39.20, 39.21 or 39.23 of the First Schedule to the Customs Tariff Act, 1975, when imported into India for use in processi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nanas, etc. which were highly perishable. He had stated that at present the wastage of these items was to an extent of 35% and the same occurred at various stages i.e. when it was handled by the farmers, wholesale dealers, retailers and even the housewives. Packaging fruits or other food articles in vacuumised flexible packages increases the shelf life to nearly 140 days and thus prevents the loss that would have occurred if the packaging had not been resorted to. He had explained that as a result of financial benefit that would have been derived therefrom, far outweighs the cost of packaging. The said person explained that they were engaged in making various studies i.e. kind of flexible packages to be used, the cost thereof and such other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inted out that the Collector had taken into consideration the use of the machine and not the status of the importers whether they were engaged in the processing/packaging of food articles. It is pointed out that the machine has been imported only for Research and Development purposes and not for use in any industrial unit, engaged in processing/packaging of food articles. Therefore, the benefit in terms of said serial number cannot be extended. It is further reasoned that the accent is on the word `for use', and the goods in the present case are for R & D purposes, which disentitle the importers from claiming the benefit of the Notification. 5. Shri A R Agarwal, the Learned DR argued the case on the basis of reasonings adopted by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... food articles on a commercial scale. The terms of the Notification clearly discloses that the import of the goods should be for use in processing/packaging of food articles. It follows that this exemption is granted by the Central Government to Industry which is in existence and which is going to utilise these machines for production and marketing of goods in Indian market. Such a production and marketing of fruits results in recovery of domestic duty in the form of excise duty which is a revenue collection for the Government. Although the interpretation cannot be embarked upon the supposed intention behind the Notification for granting the exemption and which we are not doing but however, the contention of the Revenue, which requires acce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rticles, which they intended to start. There is a lot of difference between intending to start an industry and that of carrying on research in that line as well as with use in processing/packaging for food articles. There is a possibility that such a scheme of study may fail and the importer may not enter into business in processing/packaging of food articles. Therefore, on such supposed intention of the import, a benefit meant for an existing industry cannot be granted, at this stage, specifically in respect of a machine which is admittedly not capable of undertaking processing/packaging of food articles on a commercial scale. The citations referred to by the Learned Advocate is clearly distinguishable and do not apply to the facts and cir ..... X X X X Extracts X X X X X X X X Extracts X X X X
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