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2012 (8) TMI 445 - CESTAT, MUMBAIDenial of benefit of Project Import Regulations, 1986 - increase of more than 25% in the installed capacity is not achieved - Held that:- The appellant filed the memorandum with the Secretariat of Industrial Approval, Ministry of Industry for substantial expansion of the Project Import from 8.63 lacs tons per annum to 11.29 lacs tons per annum on 18.9.1992 as per Project Import Regulations, 1986, they have started substantial expansion of their project in the first phase by procuring indigenous components and later on when they need for imported components they registered themselves with the Customs department as per Regulation 5 of the Project Import Regulations, 1986. In that view the date of installed capacity is to be taken as the date when the appellant filed the memorandum with the Secretariat of Industrial Approval in the Ministry of Industry. If the appellant filed the contract for import of the imported components at the first stage expansion then the appellants are entitled for the benefit of the Project Import Regulations, 1986 under the Customs Tariff Heading 98.01, but if they filed the contract in second phase they are not entitled this is not acceptable, thus the appellants are entitled for the benefit of the Project Import in the second phase also. As appellant has complied with the condition of the Project Import Regulations, 1986 therefore the appellants have not violated the provisions of Section 111 (o) of the Customs Act, 1962. Therefore, the 170 computers against which the duty has been confirmed are not liable for confiscation. When the goods are not liable for confiscation, penalty under Section 112 ibid is not leviable. Accordingly, redemption fine and penalty are also set aside. As the appellant has conceded to the demand of 170 computers which were installed in their factory, therefore the demand against those computers which are in their office is confirmed.
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