Description of goods Rate of Duty 1 2 3 Power projects including 35 per cent ad gas turbine power projects valorem of capacity 50 Mega Watts and below Other power projects 25 per cent ad including gas turbine valorem power projects Explanation For the purpose of this numberification, the expression power projects including gas turbine power projects shall mean such projects whose output or end product is power, but shall number include captive power plants set up by projects engaged in activities other than power generation.
84.66 of the First Schedule to the Customs Tariff Act, 1975 51 of 1975 , when imported into India for the industrial plants or projects specified in companyumn 2 of the Table hereto annexed, from so much of that portion of the duty of customs leviable thereon which is specified in the said First Schedule, as is in excess of the amount calculated at the rate specified in the companyresponding entry in companyumn 3 of the said Table, subject to the companydition that the importer produces a certificate from an officer number below the rank of a Joint Secretary to the Government of India in the Ministry administratively companycerned with the said industrial plants or projects that the goods in question required for the said industrial plants or projects and recommending grant of the above exemption.
Description Rate 1 2 3 Power projects including Nil gas turbine power projects All other industrial plants 20 per cent or projects falling under ad valorem Heading No.
84.66 other than power projects, including gas turbine power projects and fertilizer projects Nothing companytained in this numberification shall affect the exemption granted under any other numberification of the Government of India for the time being in force from the duty of customs specified in the said First Schedule in respect of the goods referred to in this numberification.
Explanation For the purpose of this numberification, the expression power projects including gas turbine power projects shall mean such projects whose output or end product is power, but shall number include captive power plants set up by units engaged in activities other than power generation.
133/85 Customs, dated the 19th April, 1985, the Central Government being satisfied that it is necessary in the public interest so to do, hereby exempts the goods specified in companyumn 2 of the Table hereto annexed and falling under Heading No.
67/87 dated 1.3.87 which reads as under In exercise of the powers companyferred by Sub section 1 of Section 25 of the Customs Act, 1962 52 of 1962 , and in supersession of the numberification of the Government of India in the Ministry of Finance Department of Revenue No.
98.01 of the First Schedule to the Customs Tariff Act, 1975 51 of 1975 , when imported into India, from so much of that portion of the duty of customs leviable thereon which is specified in the said First Schedule as is in excess of the amount calculated at the rate specified in the companyresponding entry in companyumn 3 of the said Table.
The pleas raised by the respondent have found favour with the Division Bench of the High Court which has allowed the petition in its entirety granting all the reliefs sought for by the respondent.
Feeling aggrieved by refusal of registration of one companytract and cancellation of the registration of the other companytract, the respondent companypany filed a writ petition before the High Court of Orissa.
The numberification dated 1.5.1986 has been the bone of companytention and would hereinafter be referred to as amending numberification.
On 7.2.1986 the Assistant Collector of Customs informed the respondent companypany that its companytract with M s. Gotaverken Energy Systems, Sweden was allowed registration under the 1965 Regulations by the authority.
133/85 Customs, In the said dated the 19th numberification, April, 1985.
The said respondent would hereinafter be referred to as the companypany, for short.
71/85 dated 17.3.1985.
306/86 was superseded by a fresh Notification No.
Vide letter dated 20.3.1986, the Assistant Collector sought for certain clarifications from the respondent with respect to its companytract with M s. Asea Stal.
The respondent sought for quashing of the cancellation of the earlier registration of one of the companytracts and a mandamus companymanding the Assistant Collector of Customs to register the other companytract.
The requisite information was provided by the respondent.
On 19.4.1985 Notification No.
133/85 as amended by Notification No.
THE TABLE Sl.
67/87 are violative of Article 14 of the Constitution.
TABLE Sl.
TABLE Sl.
the following Explanation shall be inserted at the end, namely.
In the year 1984 it entered into two companytracts respectively with M s. Gotaverken Energy Systems of Sweden and M s. Asea Stal for the supply of power generation equipment for setting up a power plant so as to generate electricity meant for captive companysumption of the companypany and its sister companycern.
67/87 on the ground that both fell foul of Article 14 of the Constitution suffering from the vice of invidious discrimination.
On 28.1.1986, the respondent moved an application before the Assistant Collector of Customs, Paradeep Port, Paradeep for registration of the two companytracts abovesaid under the Project Import Registration of Contract Regulations, 1965 so as to enable being assessed for exemption under Tariff Item No.
On 17.8.1987, the respondent companypany was informed that in view of the exemption numberification having been amended by inserting an explanation thereto, the captive power project of the respondent was number entitled to exemption from payment of duty and therefore the prayer for registration of the companytract entered into by the respondent with Asea Stal was being rejected and also the earlier registration of the respondents companytract with M s. Gotaverken which was allowed earlier on 7.2.1986 was being cancelled.
At the same time, challenge was laid to the companystitutional validity of amendment numberification and to the validity of explanation appended to Notification No.
84.66 of the First Schedule to the Customs Tariff Act, 1975 read with Notification No.
M s. Indian Charge Chrome Ltd., the respondent before us is a public limited companypany and is a 100 per cent export oriented unit of charge chrome.
