2009 (8) TMI 74

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....titioners were required to get the contracts entered into with the the foreign suppliers, registered with the Customs House through which said goods were to be imported in the manner stipulated in the said Regulations. The petitioners accordingly on or about 29^th January 1991 submitted 18 such contracts to the 2^nd Respondent for registration. Imports in respect of ten subcontracts are to be covered by REP licences procured by the petitioners in the normal course of business under which the goods covered by those ten contracts are eligible to be imported. The petitioner, furnished the necessary details as required under the Regulations to the 2^nd Respondents so as to enable 2^nd Respondent to take steps to register the contracts. The respondent no.2 refused to register the ten contracts on the ground that the said goods require specific licence for availing benefit of project imports in terms of Regulations 5(4) of the said Regulations and further that the REP licence produced by the petitioners were not specific. . According to the petitioners, the said Regulations do not require any such specific licence to avail of the benefit of project import. Refusal therefore on the par....

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....e same would be covered by tariff entry 98.01. 5. To answer the issue we may gainfully refer to the Regulations of 1986 which are known as the Project Import Regulations 1986.  Section 2 of the Regulations sets out that these regulations apply for the assessment and clearance of goods falling under Heading No.98.01 of the First Schedule of the Customs Tariff Act 1975. Regulation 4 sets out that assessment under Heading 98.01 shall be available only to those goods which are imported against one or more specific contracts which have been registered to the appropriate Customs House in the manner specified in Regulation 5 and such contracts have been registered before any order is made by the proper Officer of Customs permitting the clearance of Customs and the other requirements set out therein. As Regulation 5 is the relevant regulation for our consideration, we must gainfully reproduce the relevant portion thereof. 5. Registration of contracts: (1) Every importer claiming assessment of the goods falling under the said heading No. 98.01 on or before their importation shall apply in writing to the proper officer at the port where the goods are to be imported or where the du....

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....policy subject to the following conditions: (i) Import of a single item shall not exceed 10% of the overall flexibility, subject to a maximum of Rs. 10 Lakhs; (ii) In case 10% of the flexibility, as per subpara (i) above, works out to an amount less than Rs. 1 Lakh, import of a single item may be allowed for a value upto Rs. 1 Lakh within the value of the license, provided this value of Rs. 1 Lakh is otherwise covered by the overall flexibility permitted as above. (iii) Where the total flexibility allowed itself works out to an amount which is less than Rs. 1 Lakh, the full flexibility can be availed of for import of a single item. (2) Within the value of the flexibility allowed as above, the REP license can also be utilized for import of capital goods without the recommendation of the sponsoring authority and without indigenous clearance, subject to the following conditions: (i) the total value of import shall not exceed Rs. 10 Lakhs; (ii) import of capital goods included in Appendix I Part A, instruments included in Appendix B, and Office Machines as specified in para 118 shall not be allowed: (iii) import of tools (including consumable tools) and instruments....

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....ould have to be registered in advance with the Customs authorities and a provisional assessment will be made immediately, obviating to the maximum possible extent the need for detailed assessment of individual lots, after the goods arrive. The equipment imported under the item will be charged to duty at the general machinery rate and I am confident that the administrative improvement will facilitate the smooth import of such equipment and also give some encouragement to the manufacture within the India as much as possible of the equipment needed for these projects." 8. Considering this object the Regulation sets out that the contract must be registered with the appropriate Customs House. Regulation 5 deals with registration of said contracts and requires that this application shall be accompanied by the original contract along with the true copy thereof. The further requirement is that it shall also be accompanied by the Import Trade Control licence "wherever required," specifically describing the articles licensed to be imported. An Import Trade Control licence is normally required in respect of goods which are prohibited. The latter part of Regulation 5(4) is in respect of goo....