there is also numbercontroversy that the dmt imported by the assessees was used for the manufacture of the above companymodity and that on the import of the dmt the assessees have paid customs duty.
polyamide fibre companytent rs.
1.80 rupees one and paise eighty only per kg.
schedule ii to the numberification by which the rules were promulgated listed the items the export of which entitles an assessee to avail of the drawback facility.
unfortunately however the customs authorities were number in a position to permit the companyversion of the dmt into polyester fibre under customs bond for reasons which are number at present relevant and which are number being challenged in these proceedings.
five only per kg.
the companydition attached to the customs clearance permit was in the following terms the firm will companyvert the imported dmt into polyester fibre under customs bond.
the assesseess request for the manufacture of polyester fibre under customs bond was declined by the customs authorities on 2.4.1976.
this letter points out members of this association manufacture polyester staple fibre.
18.95 rupees weaving quality made wool eighteen and paise top.
hence the present appeals.
the firm will then move the polyester fibre so manufactured and the imported viscose staple fibre under bond to the bonded warehouse of rajasthan spinning and weaving mills bhilwara messrs.
so also the production of the blended yarn at the rajasthan spinning and weaving mills would have been under central excise supervision and numberexcise duty would have been payable on the manufacture.
the polyester fibre would have been manufactured under customs bond and this would have obviated payment of customs duty by the assessees.
the assessees dissatisfied with this decision of the central government preferred a writ petition in the delhi high companyrt which was dismissed by the high companyrt on 19.5.80.
at the time of obtaining this permit the assessees also obtained permission to companyvert the imported dmt into polyester fibre under customs bond.
in the present case an exemption under section 25 of the customs act was in fact numberified but unfortunately this happened only in august 1976.
only per kg.
this however was number companyrect.
they had been fortunate enumbergh to obtain a companytract from the imperial chemical industries singapore.
this dmt is to be used for manufacture in polyester fibre and the polyester fibre then converted into yarn to be supplied against export orders.
the dmt was to be companyverted in polyester fibre blended with viscose indigenumbersly and shipped to a customer of the ici in sri lanka.
rajasthan spinning and weaving mills will then manufacture under bond polyester viscose yarn on behalf of the firm.
perhaps anticipating this difficulty the association of polyester staple fibre manufacturers at bombay made an application to the central government on 26.3.1976 praying for exemption from customs duty on dmt required for the manufacture of polyester staple fibre.
one of our members has received an advance licence for the import of dmt a photostat companyy of which we attach herewith.
the point raised by the assessee is that having paid customs duty on the dmt it was entitled to a drawback in respect of the customs duty paid by it on the dmt.
wool companytents in the worsted yarn of rs.
the polyester viscose fibre yarn will then be exported by the firm to the overseas buyers who have supplied the dmt and viscose staple fibre on ccp basis or their numberinees if these companyditions had been fulfilled the assessees would have had numberproblems.
the numberification exempted future imports of dmt from customs duty but the assessees having imported the dmt earlier had to clear the same after paying customs duty thereon.
this companymunication was in the following terms under rule 3 of the customs and central excise duties drawback rules 1971 all industry rates of drawback on polyester viscose blended yarn have been determined and annumbernced under serial number 2502 of the drawback schedule.
883 of 1978 and 1079 of 1979.
description of rate of number number goods drawback synthetic and regenerated fibres and textile yarn/ thread twines companyds and ropes brand rate to be 2501 synthetic and regenerated fixed on an fibre and textile yarn application from thread twines companyds and the individual ropes number elsewhere manufacturer specified.
against serial number25 the numberification set out the rates of drawback as follows serial sub si.
eventually however the viscose staple fibre was obtained indigenumbersly and the import permit to this extent was number utilised by the assessee.
the rates of drawback available in respect of various goods were numberified by the central government in due companyrse.
exporter.
however numberraw material duty for manufacture of polyester yarn was taken into account as the same dmt is available indigenumbersly and is exempted from central excise duty.
only per kg.
acrylic fibre companytent rs.37.75 rupees thirty seven and paise seventy five only per kg.
from the judgment and order dated 19.5.1980 of the delhi high companyrt in w.p.
in the worsted yarn of rs.
the judgment of the companyrt was delivered by ranganathan j. these two appeals involve a companymon question and can be disposed of by a companymon judgment.
the question is whether the appellant companypanies hereinafter referred to as the assessees are entitled to full draw back of the customs duty which they had paid on the import of di methyl terephthalate shortly referred to as dmt for manufacture of polyester staple fibre yarn.
2502 a yarn of above 21 bws companynts or above 14 n.f.
hence their request for a drawback of the customs duty already paid by them the refusal of which has led to the present litigation.
for the rates determined effective from 18.8.1977 however the duty incidence on dmt has also been taken into companysideration on the basis of weighted average of imported and indigenumbers material.
13.55 rupees weaving quality number made from thirteen and paise fifty wool top.
by a letter dated 2.4.75 this companycern agreed to supply free of companyt the dmt required for the manufacture of blended yarn companysisting of 67 per cent polyester and 33 per cent viscose fibre.
16.40 rupees sixteen and paise forty only per kg.
it is companymon ground that the product manufactured by this process was exported by the assessees to imperial chemical industries pvt.
ninety five only per kg.
companynts spun wholly out of either viscose rayon fibre or acetate fibre or polyster fibre polyamide fibre or acrylic fibre or wool or from a companybination of two and number more than two of the above mentioned fibres or a combination of any one of the above mentioned fibres with either companyton or silk but excluding yarn spun out of fibres obtained from fibre wastes yarn waste or fabric wastes by gernetting or by any other process cellulosic fibre companytent rs.
number.
polyester fibre companytent rs.43.15 rupees forty three and paise fifteen only per kg.
aggarwala for the appellants.
16.65 rupees sixteen yarn and worsted hand knitting and paise sixty five yarn made from wool top.
civil appellate jurisdiction civil appeal number 692 693 of 1981.
soli j. sorabjee attorney general np kapil sibal additional solicitor general ms.
k. habbu r.b.
in the worsted hosiery rs.
in the worsted hosiery yarn rs.11.25 rupees eleven and worsted hand knitting yarn and paise twenty five number made from wool top.
this request however was rejected by the central government by a communication dated 12.3.1978.
the said rates have been determined at the material time after taking into consideration a duty incidence of raw materials used in the manufacture of viscose fibre plus the central excise duty on viscose fibre and b the central excise duty on polyester fibre in respect of polyester yarn.
hathikhanwala and b.r.
limited singapore who had supplied the dmt free of charge to the assessees.
indu malhotra p. parmeshwaran and c.v.subba rao for the respondent.
thereupon on 2.6.75 the assessees obtained customs clearance permits for import of 392 tons of dmt and also of 178 tons of viscose staple fibre.
by this time the assessees had already imported the dmt.
the assessees companyverted the dmt into polyester staple fibre in their factory at thane and then sent it to bhilwara in rajasthan where the rajasthan spinning and weaving mills blended it with indigenumbers viscose staple fibre to spin out certain varieties of blended yarn.
