TMI Blog1993 (10) TMI 87X X X X Extracts X X X X X X X X Extracts X X X X ..... Units (hereinafter called EOU) and they were recognised by an order dated Nil/June, 1992. The said recognition enables the petitioner to get exemption from payment of Customs duty and Additional duty in respect of their imports to the tune of 300 lakhs rupees. But it must be noticed here that the two Decanter machines were imported prior to the said recognition. However, after the said recognition in June, 1992, the said two Decanter machines developed certain functional difficulties. The repairs could not be undertaken in India and the petitioners sought for permission from the Director General of Technical Development to send back the machines to the manufacturer at Germany, to get them repaired and re-imported the same for further use b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... without filing a counter-affidavit. According to the respondents, the stand taken in the endorsement is perfectly valid and in accordance with law. Mr. C.A. Sundaram lays emphasis on the fact that the machines (two Decanters) were imported in the year 1982 long before the introduction of EOU Scheme and long before the petitioner was registered as an EOU in June, 1992. At the time of the application for seeking permission to export machines for the purpose of repairs and to have the same re-imported into India, the petitioner was only contemplating the benefit of the Notification 159 [iii] issued under Section 25(1) of the Customs Act. Even when the goods re-imported in May, 1993 and the Bill of Entry was filed on 12-7-1993, the petitioner w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , machinery and equipment already installed." The emphasis is on the words that no concession in duties would be available under the scheme for plant, machinery and equipment already installed. If the goods are taken as the import of second-hand goods. Clause 24 and 26 of the Export and Import Policy stand in the way and require a licence. It is not pretended that any such licence was issued. He then refers to the two notifications namely, 159 and 127. In fact, the only question is whether which of the said notifications apply to the instant case. There is no difficulty for the petitioner to claim exemption under the General Exemption Notification 1591 above-referred to. Coming now to the General Exemption No. 127 it says that the Central ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... I accept the argument of the learned Counsel for the respondents based on the Clause 118 of the Export and Import Policy and 159 of the Hand Book of Procedures and hold that the benefit of Notification 127 [iv] cannot apply to the instant case where the petitioner is seeking to re-import machineries installed long before the introduction of EOU scheme and which have become damaged requiring repairs abroad, after the introduction of the scheme. It is rightly pointed out that the permission granted by the Development Commissioner on 6-8-1993 will not and cannot entitle the petitioner from claiming exemption of duty. It is also pointed out by the learned Counsel for the respondents that the impugned endorsement is capable of being challenge ..... X X X X Extracts X X X X X X X X Extracts X X X X
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