1993(07)LCX0025

IN THE HIGH COURT OF JUDICATURE AT BOMBAY

M.L. Pendse and A.P. Shah, JJ.

METALMAN PIPE MFG. CO. PVT. LTD.

Versus

UNION OF INDIA

Writ Petition No. 1907 of 1984, decided on 28-7-1993

Advocated By : Shri N.R. Kantawala with Shri S.N. Kantawala i/b Kantawala & Co., for the Petitioners.

Shri K.R. Bulchandani, for the Respondents.

[Oral Judgment per : Pendse, J.]. - The petitioner No. 1 is a company manufacturing steel pipes and tubes. For manufacture of pipes and tubes the petitioners import boiler Hot Rolled Coils which are used for re-rolling. Import of Hot Rolled Coils was permitted under O.G.L. Appendix X of the relevant Import Policy. The company placed an order on February 17, 1984 for supply of 800 metric tonnes of Hot Rolled Coils. On February 28, 1984 the company opened an irrevocable letter of credit and the goods arrived at the Port of Bombay on August 17, 1984. The company filed a bill of entry and sought clearance under Entry No. 73.08 of the Customs Tariff Act. The entry reads as follows :

“Iron or steel coils for re-rolling”.

The rate of duty is 60%. The Department declined to accept the claim and felt that the relevant entry is 73.13 of the Customs Tariff.

Entry 73.13 reads as follows :

“Sheets and plates, of iron or steel, hot-rolled or cold-rolled.”

and the duty payable is 100%. Being aggrieved by the assessment order endorsed on the bill of entry demanding duty under Entry No. 73.13, the petitioners filed the present petition under Article 226 of the Constitution challenging the assessment made by the respondents.

2. Mr. Kantawala, learned counsel appearing on behalf of the petitioners, submitted that when there is a specific entry in respect of iron or steel coils for re-rolling under Heading No. 73.08, it is not open for the Department to demand duty under 73.13. The submission of the learned counsel is correct and deserves acceptance. The petitioners have specifically averred that the import of iron or steel coils was for the purpose of re-rolling and the respondents have not filed any return to dispute the correctness of the said averment. Mr. Bulchandani, learned counsel for the Department, submitted that the coils which have been imported are hot rolled or cold rolled and, therefore. Entry No. 73.13 is attracted. The submission is not correct. Perusal of notes in Chapter 73 of the Customs Tariff indicates that coils for re-rolling means coil semi-finished hot rolled products. A perusal of note (00k) unmistakably establishes that the iron or steel coils even if hot rolled or cold rolled would squarely fall within the ambit of Entry 73.08. Mr. Kantawala also submitted that in respect of import of identical material by M/s. Nagarjuna Steel Limited, the Department had permitted clearance under Entry 73.08. In our judgment, the action of the respondents in assessing the bills of entry under 73.13 cannot be sustained.

3. Accordingly, petition succeeds and rule is made absolute in terms of prayer (a). As the goods are already cleared by interim order on furnishing Bank Guarantee, the only relief now required to be granted is to direct that the bank guarantee shall stand discharged. In the circumstances of the case, there will be no order as to costs.

Equivalent 1993 (68) ELT 285 (Bom.)