Home Case Index All Cases Customs Customs + AT Customs - 2022 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (11) TMI 60 - AT - CustomsDenial of benefit of Project Imports Regulations, 1986 - import of goods for the project meant for Prayagraj Thermal Power Project Generation of Co. Ltd. - importing goods at ‘nil’ rate of duty - Whether violation of Regulation 7 of Project Import Regulations, 1986 is sufficient to deny the duty benefit to the appellants? HELD THAT:- The perusal of the provision reveals that the language used therein does not make the provision mandatory. There are conditions in the statute that some of those may be substantive, others may be mandatory and based on consideration of policy and some others may merely belong to the area of procedure - the conditions of provision / Regulation 7 are not mandatory, they are merely directory. In the present cases the purpose of statute was to grant a beneficial rate of duty to the goods imported for setting up a new project, the appellants was such a project and had satisfied the conditions for eligibility Regulation 7 comes into force much after the imports are over and is actually meant only to facilitate finalization of provisional assessment. It did not have any effect on the eligibility to the lower rate of duty - substantial benefit of exemption from Customs duty has wrongly been denied by invoking procedural provision which is not at all mandatory. The cases are remitted to the original authority for finalizing the assessment in terms of project contract in the light of reconciliation statement filed - Appeal disposed off.
|