TaxTMI 
TaxTMI 
1984 (2) TMI 341
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...., Calcutta. They carry on business inter alia of colour film processing and printing of colour films. Their business has been registered as a small scale industrial unit with the Directorate of Industries, Government of West Bengal. The appellants were granted two import licences for the import of (i) one number Divomat Mini Film Developing Machine, including Automatic Replenishment Drying Cabinet and five hangers, compressor for air 1000 MM tank height and spore part kit; (ii) one number Propak Paper Processor Model 50/1 with accessories and user spare part kit. The goods were cleared under Heading 84.66 of the First Schedule to the Customs Tariff Act, 1975. According to the appellants, the machinery, instrument, apparatus, appliances or a....
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....estion was a non-industrial unit and did not come under the purview of the Heading 84.66. Since the goods were covered under Heading 90.10 of the First Schedule, there was a demand of a short levy of customs duty amounting to ₹ 2,51,239.77. The appellants submitted a reply on 11-8-1981. The Assistant Collector, by his order dated 3-12-1981, rejected the request of the appellants for registration of the relevant contracts on the identical grounds aforesaid. In the meanwhile, the Deputy Director of Industries (Certification), Government of West Bengal, wrote to the Customs authorities to accord the benefit of concessional rate of import duty. A similar letter was sent by the Small Industries Service Institute. The Collector of Customs, ....
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....V. Kunhikrishnan, the Departmental Representative, pointed out that the entry contemplated industrial unit. According to him, the appellants were not manufacturing any standard product. Their unit was only a laboratory. There was no manufacturing activity. He pointed out that as per paragraph 177(2) of the Hand Book of Import & Export Procedure 1983-84, the appropriate authority to decide the benefit of the concession was the Customs authorities. He argued that as per the report of the Machinery Committee 1922 photographic equipment was not one of the items identified. He pointed out that the Tariff Entry prior to 1975 read as follows : "Extract from Indian Customs Tariff, 1972: 72.  (a) *       &em....
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....try. We have initially to find out whether the appellants' establishment can be treated as an industry. Only if that basis is established, then the import of the machinery would qualify for assessment under heading 84.66. The term industrial plant' has not been defined in the Customs Act or elucidated in the notifications. But an industry has been defined in Shri T.P. Mukerjee, Law Lexicon Volume I, Page 832, as "any business, trade, undertaking, manufacture or calling of employers and includes any calling, service, employment, handicraft of industrial occupation or avocation or workmen. But this definition refers to the connotation of that term under the Industrial Disputes Act. "Industry" has been defined in Chambers 20th Century Dic....
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....l scale industrial unit. The Government of West Bengal have also recognised the institution as such. But the registration was for the purpose of extending certain benefits which a small scale industrial unit would be entitled to. On that ground, it cannot be presumed that the appellants' establishment would be an industry. The letter granted by the Ministry of Industries recommending a concessional Customs duty would be in furtherance of the recognition of the establishment of the appellants' unit as a small scale Industrial Unit. These documents would not advance the case of the appellants in this proceeding. The question whether a particular imported machinery would attract duty or not has to be decided by the Customs authorities. As the ....