The appellants appeal to the Central Board succeeded, and therefrom the Revenue went in appeal to the tribunal.
Prior to placing of any firm order for purchasing any equipment, machinery, spares, accessories, or raw materials, GENERAL shall obtain quotations from responsible qualified suppliers thereof and shall submit quotations and GENERALs recommendations to ATL for final approval and authorization to place such orders but numberorders shall be placed by GENERAL unless approved and authorised in writing by ATL.
Counsels letter dated 20.7.79 to the Collector of Customs and Central Excise .
They entered into an agreement for the supply of technical know how, documentation and the like.
The agreement in Articles 5 stated, so far as is relevant OPTIONAL PROCUREMENT SERVICES 5.1 ATL shall have the option and right to call for the services of GENERAL for procurement or any one or more items of equipment, machinery, spares, accessories and raw materials required for the PLANT, which ATL may elect to purchase, and GENERAL shall arrange for obtaining quotations and for rendering or all the related services, including inspection at the suppliers manufacturing site, furnishing for such supply of all necessary documentation, guarantees, data and manuals relating to and customarily supplied with, for installing, testing, operating and maintaining such equipment and machinery and the details as to the needs and procurement of spare parts and accessories therefor.
On the same day they entered into a second agreement which numbered that the second party to the agreement, General Tyre International Company, had for many years been engaged and had acquired vast experience in the manufacture of tyres as well as the design, engineering and equipment of plants for the same.
The appellants were setting up a plant for the manufacture of tyres.
P. BHARUCHA.
J. Under appeal is the judgment and order of the Customs, Excise and Gold Control Appellate Tribunal, New Delhi.
The Tribunal allowed the appeal of the Revenue setting aside the order of Central Board of Excise Customs and restoring the order of the Collector of Customs, subject to the modification or reducing the quantum of penalty.
