1979 (12) TMI 79

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....pplied for two licences for the import of industrial diamonds for the period 1971-72. On 22nd March 1972 the petitioner was granted two licences valid till 30th June 1972 with a grace period of 30 days. Under these licences the petitioner-Company imported industrial diamonds on the basis of invoices dated 11th April 1972. The import was covered by two Bills of Entry dated 23rd June 1972 and 28th June 1972. At the time of import, the Customs Appraiser made the following observation on the Bill of Entry : "Looking to points, colour and size these are gem cutable. However, taking into account so many natural points, on the stones these could be used in industry also." On 10th October 1972 and 11th October the Assistant Collector of Custo....

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.... 40% ad valorem duty on the diamonds imported on the basis that they were industrial diamonds. The duty on gem quality diamonds was only 2 1/2% ad valorem. After the two orders dated 17th March 1973 were passed by the Deputy Collector of Customs, the petitioner-Company applied for the refund of the excess duty paid by it. On that application an order was passed by the Assistant Collector on 1st May 1973 refusing the refund on the ground that the diamonds had industrial application. The petitioner's appeal was dismissed by the appellate authority on 6th March 1976 on the ground that the diamonds were industrial diamonds and hence the order dated 1st May 1973 of the Assistant Collector was correct. 3. It is in these circumstances that the ....