1990 (3) TMI 160

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....m Chipper under Bill of Entry No. 82/5-2-1981-HD. No. 49/12-2-1981. Before clearing the goods under the Bill of Entry, the Appellants had filed an application dated 17-1-1981 to the Asstt. Collector of Customs, Import Department, Cochin requesting that the application filed by the Appellants may be registered for Project Imports and a Project Import Number allotted, so that the benefit of the lower rate of duty applicable to Project Imports would be available to the import of the machine at the time of clearance. The appellants also wrote a letter to the Assistant Collector on 4-2-1981 explaining the circumstances in which the Chipper machine was imported and requesting for registration and the benefit of Project Importation contracts. 3. ....

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....ce dated 3-5-1977 for the manufacture of Fibre Board (Hardboard, Semi Hardboard and Soft Boards) for 20,000/- tonnes - 12,500 tonnes being the additional capacity. (ii) To implement this an Import Licence, dated 8-8-1977 (except for the Drum Chipper) was issued for the import of all machinery required for the expansion from Sweden. (iii) The Chipper forms an essential link in the operation of the machinery for the manufacture of Fibre Boards, since the first step in the manufacturing process involves converting wood (the basic raw material) into chips before they are defibrated into fibres, which is achieved by the Chipper. (iv) The Appellants, placed an order for the Chipper with M/s. Utkal Machinery, Orissa, an associate Company of M/s....

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....irement documents which according to him, constitute a contract under the India Contract Act for the purposes of the/Project Import Regulations. He also draws our attention to the Import Trade Control Licence bearing the following endorsement. "Project Import for assessment under Heading 84.66 of Section XVI of the Customs Tariff Act, 1975" and submits that together with the documents mentioned above, this endorsement also satisfies the requirements of the Project Import Regulations. He contends that the lower authorities erred in the interpretation of Regulation 3(4) of the Project Import (Registration of Contract) Regulations, 1965 in insisting upon a written deed of contract which would be applicable only for the entire project and not f....

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...., notify in the Official Gazette in this behalf: Provided these are imported (whether in one or in more than one consignment) against one or more specific contracts, which Customs House in the manner prescribed by Regulations which the Central Board of Excise and Customs Act, 1962 (52 of 1962) and such contract or contracts has or have been so registered before any order is made by the proper officer of customs permitting the clearance for home consumption, or deposit in a warehouse of items, components of raw materials." The proviso stipulates the necessity of one or more specific contracts. 11) Regulation 3(4) of the Project Import (Registration of Contract) Regulations, 1965 reads as follows :- "(4) The application shall be accompani....