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2023 (5) TMI 205 - CESTAT KOLKATAEPCG Scheme - Concessional rate of Customs duty - condition No.8 in the condition sheet to the EPCG licenses clearly specified the place of installation of the imported pipes to be Jajpur or Barbil, whereas the pipelines were installed outside these approved premises - extended period of limitation - suppression of facts or not - HELD THAT:- The Appellant has set up and integrated Iron Ore Pellets manufacturing facility consisting of beneficiation plant at Barbil, Odisha and pellets making facility at Jajpur, Odisha. The two Plants are located at a distance of 217 Kms. In the beneficiation Plant, at Barbil, the raw ore fines were processed and impurities were removed and converted into a concentrate. It is transported in a slurry form to the Pellet manufacturing Plant at Jajpur through pipeline. The pipes required for transporting the concentrate were imported under EPCG Scheme - the notification requires the imported capital goods are to be installed in the ‘factory or premises’ of the EPCG license holder. The Notification does not mention that the installation has to be made within the Central Excise Registered factory. The word “premises’ mentioned in the Notification is wide enough to cover the entire stretch where the pipelines were installed in this case. It is an integrated factory to manufacture Iron Ore Pellets from raw material. The EODCs were issued by the DGFT only after satisfying themselves that all the conditions specified in the Licence have been fulfilled. We also find that after issue of EODC, the Custom Department cancelled the Bond and bank guarantee executed by the Appellant. The Department has cancelled bond and bank guarantee after satisfying that the Export Obligation was fulfilled and EODC was produced and the Appellant has satisfied all the conditions of the Notification or the licence. Hence, both DGFT and Customs Department has come to the conclusion that the Appellant has fulfilled all the conditions of the Notification or the Licence. Extended period of limitation - Suppression of facts or not - HELD THAT:- There is no suppression involved in this case. Consequently the demand confirmed in the OIO as well as penalties imposed are not sustainable on the ground of limitation also. However, on merits itself it is held that the demand of customs duty and the interest and penalty demanded in the OIO are not sustainable. Accordingly, the OIO set aside on merits and the appeal filed by the Appellant are allowed. The Appellant has installed the pipelines within the factory or premises of the assesse and hence, they are eligible for concessional rate of duty as specified in Notification No. 64/2008-Cus. dated 09/05/2008 - Appeal allowed.
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