TMI Blog1975 (6) TMI 16X X X X Extracts X X X X X X X X Extracts X X X X ..... wers 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 chemicals for the manufacture of insecticides, pesticides and fungicides and falling under Item 28 of the First Schedule to the Indian Tariff Act, 1934 (32 of 1934) when imported into India - (i) from so much of that portion of the duty of customs leviable thereon, which is specified in the said Schedule, as is in excess of 10 per cent ad valorem where the standard rate of duty is leviable; (ii) from the whole of the duty of customs leviable thereon which is specified in the said Schedule, where the preferential rate of duty is leviable. 2. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntries raw materials including High Boiling Tar Acid, and Chlorinated High Boiling Tar acid MKU type. These are for the sake of brevity (hereinafter referred to as "the Chemicals"). These chemicals which are imported by the Petitioners are for the manufacture of disinfectant fluids. These disinfectant fluids are marketed and sold by the Petitioners inter alia under the trade name of 'Biokem' which is also the registered trade mark of the Petitioners. It is the case of the Petitioners that these chemicals possess bactericidal and fungicidal properties and accordingly are insecticides, pesticides and fungicides, and entitled to the exemption of duty under the aforesaid Notification dated 1st March 1968. 3. However, when the goods were impor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Indian Tariff Act, 1934, when imported into India from the duty as mentioned in sub-clauses (1) and (2) of the said Notification. However, this exemption could only be granted if the conditions mentioned in paragraph 2 of the said Notification were complied with and only on such compliance. Paragraph 2 states that the exemption referred to above shall be available, if, and only if the following conditions are fulfilled, namely : - (i) the importer in each case produces a certificate from the Directorate General of Technical Development or, in the case of importation by firms which are classified as falling in the Small Scale Sector, from the Director of Industries of the State concerned to the effect that the chemicals are required for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Respondents by Mr. C.J. Shah that the Petitioners have complied with the conditions mentioned in paragraph 2 of the Notification dated 1st March 1968, read with the public Notice dated 25th September 1968, being Exh. C, to the affidavit in rejoinder, dated 29th June 1973. That is to say that it is not disputed on behalf of the Respondents that the Petitioners have duly complied with all the conditions necessary for the grant of the exemption under the Notification dated 1st March 1968, being Exh. A to the Petition. What is urged on behalf of the Respondents is that on a proper interpretation of Exh. A to the Petition, the exemption is only granted where such chemicals are used for what is termed in the affidavit in reply dated 10th July 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the affidavit in rejoinder, have been obtained by fraud or under a mistake. In my view, therefore, once these certificates have been produced and the conditions mentioned in paragraph 2 of the Notification dated 1st March 1968, have been complied with, read along with the Public Notice dated 25th September 1968, then it was obligatory upon the Customs authorities to grant the exemption under Exh. A to the Petition. In the Orders which have been annexed in the Petition both the Assistant Collector of Customs as well as of the Appellate authorities no reasons have been given as to why they did not act upon the certificates so produced. In fact, there is only an averment in the affidavit in reply that these certificates are not conclusive. I h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f of the Respondents. It is quite clear on a plain interpretation of Exh. A, that the exemption is bound to be granted once the conditions mentioned therein are complied with and which in fact is not disputed in this case. 7. In the result, therefore, these orders are liable to be set aside on the simple ground that there was no jurisdiction in Respondents Nos. 1 to 3 to consider the interpretation of the exemption Notification Exh. A to the Petition and what its meaning was, once the conditions mentioned in paragraph 2 of the said Notification, were complied with. 8. Another contention on behalf of the Petitioners, in the alternative was, that in any event the chemicals fall within the purview of another exemption Notification, Exh. B, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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