2023 (9) TMI 88 - AT - Customs

Project import - goods cleared before the registration of the contract - appellant aggrieved that they were required to pay the duty on merit rate without considering that the import is under the project scheme - HELD THAT - The very same issue was considered by the Tribunal in the case of FLANCE PROOF (GEARS) LTD. VERSUS COLLECTOR OF CUSTOMS BOMBAY 1998 (8) TMI 177 - CEGAT NEW DELHI . In the said case the appellant therein had imported the goods before the registration of the contract and the Tribunal held that the clearance of the goods before registration of the contract does not debar the appellant from availing the benefit of Project Import regulations 1986. The matter was remanded to the adjudicating authority for considering the claim of the appellant. In the case of DPS (India) Pvt. Ltd. 1992 (8) TMI 157 - CEGAT NEW DELHI a similar issue came up for consideration. In the said case the contract was not registered due to delay on the side of customs authorities. The Tribunal held that the goods in question are entitled to the benefit of concessional assessment as under project import. The appellant having made an application for the registration of the contract prior to import of goods and sponsorship letter having been issued the appellant is eligible for the exemption of duty as per the Project Import Regulations - the impugned order is set aside - Appeal allowed.

Summary

Issues involved:
The issue involved is whether the appellant is eligible for the benefit of duty exemption under project import on the goods cleared by them before the registration of the contract.

Comprehensive Details:

1. Background: The appellant, M/S. RKM Powergen Pvt. Ltd., requested registration of a project under Project Import Regulations 1986 before importing goods. However, the goods were assessed at merit rate of duty by Customs before the contract was registered.

2. Appellant's Argument: The appellant argued that they should be granted the benefit of project import scheme as they had applied for registration before importing the goods. They cited precedents where similar situations were considered in favor of the appellants.

3. Legal Precedents: The appellant referred to the case of M/s. Flance Proof (Gears) Ltd. Vs. CC, Bombay and DPS India Pvt. Ltd. Vs. Collector of Customs to support their claim that the benefit of project import cannot be denied based on the timing of registration vis-a-vis the importation of goods.

4. Additional Submissions: The appellant provided evidence of submitting necessary documents and a letter from the sponsoring authority before the goods were imported, emphasizing their eligibility for duty exemption under Project Import Regulations.

5. Decision: The Tribunal ruled in favor of the appellant, stating that since the application for registration was made before the import of goods and the sponsoring authority had issued a recommendation, the appellant is eligible for the duty exemption under the Project Import Regulations.

6. Conclusion: The impugned order was set aside, and the appeal was allowed with consequential relief, if any, in favor of the appellant.