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2017 (9) TMI 1017 - AT - CustomsProject import - concessional rate of duty - import of second hand capital goods without a license under the import policy only under Project Import Regulations on actual user basis - confiscation - penalty - Held that: - it is evident that the second hand capital goods were used in the project, for which concessional rate of duty was availed - the provisional assessment which were ordered at the time of import were finalized denying the benefit of concessional rate of duty. Accordingly, differential duty has been demanded and the same has also been paid by the appellant. In the case of the appellant, the goods were allowed to be imported at concessional rate and relaxation of Import Trade Control Regulations, only subject to actual user condition and observance of the Project Import Regulations. Since the appellant has failed to satisfy the associated condition, it is to be considered that the goods are liable for confiscation under the provisions of Section 111(o) ibid - The appellant has claimed that second hand capital goods were allowed for import freely and further that actual user condition will no longer be applicable since five year period after import is already over. Since the goods were never used for the purpose for which it was imported, the actual user condition has been violated. Consequently, we are of the view that the confiscation of the goods ordered by the Adjudicating Authority under section 111(o) ibid is to be upheld - keeping in view the fact that the goods were imported a long time ago in the year 1998-1999, the redemption fine and penalty imposed u/s 125 and 112(a) ibid are on the higher side - redemption fine reduced to ₹ 1.00 Crore u/s 125 and the penalty to ₹ 50.00 lacs u/s 112(a). Appeal allowed - decided partly in favor of appellant.
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