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2016 (12) TMI 428 - AT - CustomsProject import - eligibility of benefits of Notification No.42/96-Cus dated 23/07/1996, Sl.No.16 for “Port Development Project” - As per lower authority the setting up of LPG Storage Tanks is for their own infrastructure facility for import, storage and distribution of LPG and the facility is not available to any other Port user - whether the appellant is eligible for the benefit of Project Import Regulation or otherwise for construction of LPG storage terminal tanks at Porbunder, Gujarat claiming the benefit of notification No.42/96-Cus dated 23/07/96, Sl.No.16 in “Port Development Project” Held that: - Notification No.42/96-Cus is issued in exercise of powers conferred by sub-item (6) of Heading 98.01, the first schedule to the Customs Tariff Act, 1985, the Central Government has notified 19 projects input eligible under Project Import assessment under Chapter heading 98.01 and at Sl.No16, “Port Development Projects” are indicated. We find by letter dated 02/08/1996, the office of the Secretary of Ports & Fisheries Department, Government of Gujarat has specifically stated that they have accepted the proposal of the appellant for erecting of storage of LPG (import) facility at Porbunder Port of the Gujarat Maritime Board and by letter dated 01/02/97 clearly indicated to the Asst. Commissioner of Customs, Central Cell, GR-6) New Customs House, Mumbai that “in view of the clarifications mentioned above, the duty concession to import the items under Customs Tariff Act, 1975 and Project Import Regulations, 1986 as well Public Notice 154 Imp.133 dated 30/11/89 may be permitted as per rules to M/s.IMS Petrogas Ltd. and SHV Energy North West India Ltd. subject to the condition that total material should not exceed as attested and forwarded as Annexure-B (copy enclosed as per para 3 above) with this department even letter dated 22/10/96”. The above said paragraph reproduced from the letter of Secretary to the Ports and Fisheries Department, Government of Gujarat clearly indicates that these facilities for LPG import and storage at Porbunder Port is covered under Project Import Regulations and the said Secretary is authorized for issuing such certificates. On face of such a certificate from the concerned ministry, the Revenue authorities are in error to hold that the import of the goods under Project Import Regulations by appellants is improper as also the de-registration of project from Project Import Regulations. In our view, the ratio of the judgement of the Apex Court in the case of Zuari Industries Ltd. Vs. CCE & C [2007 (3) TMI 12 - SUPREME COURT OF INDIA] will apply to the case in hand, in its full force and there is no dispute that the said project is covered under Notification No.42/96-Cus issued by the Government of India under Heading 98.01. The appellants are eligible to the benefit of Project Import Regulations in respect of the project registered by them. The impugned orders de-registering the project imports and demanding differential duty are unsustainable and liable to be set aside - appeal allowed - decided in favor of appellant-importer.
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