TaxTMI 
TaxTMI 
2000 (11) TMI 149
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....espect of import of as many as five items. They being : (i) Rolland four colour offset printing machine, (ii) Pre-press register system for the above, (iii) High speed letter press rotary ticket printing machine, (iv) Colour scanner, and (v) Graphic Art Films in various sizes. This was being done under the provisions of Project Imports (Registration of Contract) Regulations, 1965 (unamended) and more particularly under Regulation No. 3 thereof. It was the claim of the petitioners that they were importing the aforementioned machinery and were entitled to the registration of the contract and, as a result, were also entitled to the lesser duty as covered by Entry 84.66. Both the authorities did not accept this claim of the petitioners and, therefore, the petitioners approached this Court by way of a writ petition. 4.It is an accepted position that if the contract is registered then, the petitioners get the benefit of the lesser duty on the aforementioned machinery....
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.... material essential for the maintenance of the plant or project and is not for the end product. In this context, we submit that there is not well-set definition for raw material either in Customs Tariff or in the I.T.C. Policy. Hence it is relevant to go into the dictionary meaning. "Raw material" means that out of which any process of manufacture makes the articles it produces. Thus there cannot be any raw material for maintenance initial filing up or for that reason some startup chemicals. It is too far fetched to think that the framers of this Tariff would have this in mind. Hence there is an inherent defect in the very structure of the Heading 84.66(ii). Thus our claim for the benefit of project import on principles of natural justice is maintainable under law". The learned Additional Solicitor General points out that in the wake of this stand by the petitioner, the learned single Judge could not have reverted back to Entry No. 84.66 (i) and could not have held that the item of Graphic Art Films was necessary for setting up of an unit, which was not even the case of the petitioner. As a second contention in support of the appeal, the learned Additional Solicitor General p....
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....a specified : (1)  industrial plant, (2)  irrigation project, (3)  power project, (4)  mining project, (5)  project for the exploration for oil or other mineral, and (6)  such other projects as the Central Government may having regard to the economic development of the country notify in the Official Gazette in this behalf : Provided these are imported (wherein one or in more than one consignment) against one or more specific contracts which have been registered with the appropriate Customs House in the manner prescribed by Regulations which the Central Board of Excise and Customs may make under Section 157 of the 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 or raw materials; (ii) All spare parts, other raw materials (including semi-finished material) or consumable stores imported, as a part of a contract or contracts, registered in terms of sub-heading(i) provided the total value of such spare parts, raw materials, and consuma....
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....maintenance of the plan or project. In this case, we have to keep in mind the fact that four items of machinery had been permitted to be imported under the scheme. The question whether for the maintenance of those machineries graphic art film is necessary. I have no hesitation in holding that graphic art films of various sizes are not necessary for the maintenance of the machineries imported under 84.66(i). In other words, test working of the machinery can by no stretch of imagination be equated to maintenance of the machinery". According to the learned Additional Solicitor General this is a complete answer to the appeal by the writ-petitioner who wants to fall back upon sub-heading (ii) of Entry No. 84.66 but, we shall come to that question later on. 12.Our attention was also drawn to the observations in paragraph 4 where the learned Judge proceeds to observe as under : "But there is some substance in the argument that initial setting up of the unit may require some graphic art films to test work the machinery. After all, the petitioner has not sought to import a large quantity of graphic art films. The quantity sought to be imported seems to suggest that it was mainly in....