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2005 (10) TMI 173 - AT - CustomsConfiscation Of imported Seamless C.S. pipes - seized goods were in excess of the quantity of pipes - Penalty - Customs exemption - whether the goods imported in April and September, 2002 are eligible to the benefit of duty free import under Notification No. 21/2002 - HELD THAT:- The stand of the Department is that since the seized goods were in excess of the quantity of pipes actually used in the Laxmi Field Project Phase I by the importers who had entered into a contract dated 29-6-2001 with M/s. Cairns Energy Pvt. Ltd. for execution of the above project by carrying out engineering, designing, procurement construction, fabrication and installation of two platforms, pipelines and onshore gas processing plant etc., they were not required for the project and hence the condition in the notification had been violated by them. On the other hand, the importers contend that the goods were required for the project as certified by the Directorate General of Hydro Carbon who is the authority prescribed under the Notification for issue of certificate of requirement, and that there is no stipulation in condition 31 that imported goods have to be actually used in the said project; and therefore sale of seamless pipes is not contrary to the condition of the Notifications. In the case of Commissioner of Central Excise Chennai v. Q Max Test Equipment Pvt. Ltd. [2003 (3) TMI 513 - CEGAT, CHENNAI] and in the light of the admitted position that the project was completed by the appellants which in turn confirms that the 400 MM dia Seamless C.S. Pipes were intended for use in the project we hold that the appellants are eligible to the benefit of Notification No. 21/2002 and hence confiscation duty demand and penalty are not sustainable, and accordingly set aside the same. The impugned order is set aside and the appeal allowed.
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