1980 (3) TMI 90

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.... design for the purpose of collecting yarn and giving a twist to it on the spinning machine. Pot motors have been given a very special shape for accommodating 132 such pot motors on each spinning frame in between-Coagulation Trough and Spray Collection Troughs. Spindle of these pot motors is specially constructed to give positive movement of 7600/r.p.m. Such or like pot motors are not produced or manufactured in India. These pot motors are essential integral component parts of the spinning machines and these pot motors cannot be used outside the rayon spinning machines. 2. The petitioner imported these pot motors during the years 1961 and 1964. The petitioner contended that the customs duty chargeable on these pot motors would be under E....

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....ors were not manufactured in India at all, the Customs authorities charged countervailing duty on these pot motors under Section 2A of the Indian Tariff Act. 4. The petitioner challenged the Customs authorities' view by Writ Petitions which resulted in the remand of the case by this court for a decision by the Government of India. Accordingly, the matter was decided by the Government of India by the written order, dated 9/15th March, 1972. Though it is a long and apparently well considered order, the crucial point is dealt with at page 70 of the paper-book at the end of paragraph 13 of the impugned order, in the following words : "It is not anybody's case that these motors have any use outside the rayon spinning machines. But the ques....

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....son why the pot motors fell under Entry 72(3) and not Entry 73(21). The latter entry applied only when the excise duty for the time being leviable on like articles if produced or manufactured in India where such duty is leviable at different rates, the highest duty is leviable at different rates, the highest duty, if such articles are produced or required in India. Since it is also an admitted case that such or like articles are not manufactured in India under Entry 72(21) is not applicable. If applied a strange result would follow because no duty would be chargeable at all on pot motors under Entry 72(21) which would be a result which certainly would not be contemplated by the Customs authorities. 7. The contention of the petitioner is ....