TMI Blog2002 (8) TMI 114X X X X Extracts X X X X X X X X Extracts X X X X ..... igarh, etc. During the period relevant for the present petition, the Petitioners, with a view to modernise and avail benefit of updated printing technology decided to import 4 Web Fed high Speed Offset Rotary machine from three different parties. 3.Under the Customs Act, 1962 ('Act' for short) the rates at which the duties are leviable on imported goods are specified in the first and second schedule to the C.T.A. Chapters 1 to 97 of the first schedule of the C.T.A. classifies various goods and specifies the rate of duty leviable thereon. Chapter 98 of the C.T.A. deals with the project imports wherein the importers are entitled to import all machineries, and other articles required for their project by registering their contract under the Project Import Regulations framed under the Act. Under this Chapter 98, even though the machineries or other goods and articles required for the project are appropriately classifiable under different Chapters 1 to 97 of the First Schedule to the C.T.A., then, on account of registration under Project Import Regulations, all these machineries, articles and goods required for the project falling under different chapters are classifiable and liable t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mported into India for the industrial plants or projects in excess of 45% of the basic customs duty. Since there was no exemption for payment of auxiliary duty, it was contention of the revenue that the machineries imported by the Petitioners are liable to be cleared on payment of customs duty @ 45% C.T.A. and auxiliary duty @ 45% under Chapter heading 98.01 of the C.T.A. In view of the controversy, the Petitioners sought to keep the said machines in bonded warehouse and filed the present petition challenging the action of the Respondents. While admitting the petition, this Court permitted clearance of the goods on certain terms. Initially, there was also a dispute regarding the printing capacity of these machines in question. However, at the hearing of the Writ Petition, it is conceded by the Customs Authorities that they are satisfied about the printing capacity of the machines imported and the only dispute now remains to be adjudicated upon in this Writ petition is with regard to the availability of the benefits of the Exemption Notification Nos. 114/80 and 113/87 to the goods imported by the Petitioners. 6.Mr. Madon, learned Counsel appearing on behalf of the Petitioners subm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... view of the specific clause containing the Notification No. 132/85 dated 19-4-1985, the Petitioners were entitled to the benefit of exemption Notification applicable to horological machines under Notification dated 28-2-1985. This Judgment of the Apex Court was subsequently followed by the Apex Court in the case of Mahavir Aluminium Ltd. (supra) and it was held that the machines falling under Chapter 84 even if cleared under the heading 98.01 as project imports, would still be entitled to avail the benefit of exemption Notification available to the machines cleared under Chapter 84 of the C.T.A. In the light of these aforesaid two binding decisions of the Apex Court, it is submitted that the Petitioners are entitled to succeed in this petition. 8.Mr. Jetly, learned Counsel appearing on behalf of the Respondents, on the other hand submitted that the second clause in the Notification No. 132/85 has to be construed to mean that availing the benefit of the said Notification No. 132 of 1985 will not affect the exemption granted under any other notification under Chapter 98 of the C.T.A. In other words, the submission was that in view of the non obstante clause contained, the Notificat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt relied upon by the Petitioners and the Respondents appear to be conflicting, on close scrutiny it can be seen that there is no conflict and the said decisions of the Apex Court operate in different fields. In the case of Tamil Nadu Newsprint and Papers Ltd. (supra), the exemption Notification No. 61/83 applicable to the registered contract did not contain the non obstante clause as contained in exemption Notification No. 132/85 dated 19-4-1985. In view of the absence of the clause namely "Nothing contained in this notification shall affect the exemption granted under any other notification of the Government of India for the time being in force from the duty of customs specified in the said First Schedule in respect of the goods referred to in this notification." In exemption Notification No. 61/83, the said decision of the Apex Court in the case of Tamil Nadu Newsprint and Papers Ltd. (supra) is distinguishable on facts. However, in the case of Abrol Watches Co. Pvt. Ltd. and Mahavir Aluminium Ltd. (supra) the Apex Court directly dealt with the clause in the exemption Notification, which is akin to the present case. In these two decisions the Apex Court has analysed the above cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cs Ltd. v. C.I.T. reported in 2000 (119) E.L.T. 513 (S.C.) = JT 2000 (7) S.C. 82 had held that although the circulars or instructions issued by the Board are binding, when the Supreme Court or the High Court has declared the law on the question arising for consideration, it will not be open to a court to direct that a circular should be given effect to and not the view expressed in a decision of the Supreme Court or the High Court. In the instant case, since the Apex Court in the case of Abrol Watches Pvt. Ltd. and Mahavir Aluminium Ltd. (supra) has considered the scope and ambit of Notification No. 132 of 1985 in the wider perspective, it will not be possible to accept the narrower construction sought to be placed by the revenue on the basis of Finance Ministry's letter dated 8-8-1987. 11.For the aforesaid reasons, we hold that even though the machines imported by the Petitioners were registered as project imports so as to classify the same under Chapter heading 98.01, in the light of the non obstante clause contained in the exemption Notification No. 132/85 (Exhibit T-1 to the petition), the Petitioners are entitled to avail the benefits of the exemption Notification No. 114/80 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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