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TMI Blog2015 (9) TMI 204X X X X Extracts X X X X X X X X Extracts X X X X ..... it of Rs. 50 lacs to the Petitioner. 4. The Petitioner has also prayed for direction to Respondent Nos.1 and 2, restraining them from encashing the bank guarantees till the finalization of the project. 5. The Petitioner has approached this Court in peculiar facts. The contract of the Petitioner for expansion of its existing unit was registered in the Customs House at Mumbai on 30th May, 2008. Two bank guarantees in the sum of Rs. 7,82,19,000/- were issued by Respondent No.2 in favour of Respondent No.1 at the request of the Petitioner. The Petitioner has filed 52 Bills of Entry in respect of import of machineries under project import between June 2008 to April 2011. The last of such imports was on 28th April, 2011. On 17th June, 2011 the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Respondent No.2 - ICICI Bank Ltd. for extension of bank guarantees. On 21st February 2014 the Petitioner addressed a letter to Respondent No.1 stating therein that since everything at the Petitioner's end was complied with, the assessment was required to be completed within sixty days and as such, requested for finalization of the contract and further requested that the renewal of the bank guarantees may not be insisted upon. In pursuance to the public notice issued by the Respondents on 26th September, 2014 the Petitioner re-submitted reconciliation statement as per the prescribed format and again requested for finalization of the contract and release of the bank guarantees and cash deposit. However, again a letter was addressed by Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erned ports and it will take around six months to scrutinize all the reports vis-a-vis recommendation letters. 9. In so far as the first contention raised by the department is concerned, we have examined Project Import Regulations, 1986. Perusal of Regulation 4 read with Regulation 3(b), does not, in our opinion, provide that in all cases wherein the project cost is more than Rs. 5 Crores, the recommendation letter has to be given by the Central Government. Nodoubt, Clause 1 provides that all plants and projects under SSI Units, the sponsoring authority would be Director of Industries of the Concerned State. However, it must be noted that under Clause 2 which deals with all power plants and transmission projects, various sponsoring authori ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that the expansion was completed in all respects on 10th May, 2010 when the new paper machine came into operation. He has also given details regarding the production figures. 10. In so far as the second contention regarding the Bills of Entry being sent to various ports is concerned, if the Respondent authorities sit over the said Bills of Entry for years together, it cannot thereafter be heard to say that the verification of the Bills of Entry would take time and therefore, assessment cannot be completed. 11. It will be relevant to refer to the following portion of the circular No.22/2011-Customs dated 4th May, 2011 issued by the Central Board of Excise and Customs : "3.1 The matter has been examined and the recommendations made by C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Plant / Project site, utilization of imported goods in the manufacture of declared goods etc. are submitted up to the satisfaction of proper officer for finalization of contract. The Commissioner shall therefore ensure that the aforesaid time limit for finalization of Project Imports under PIR, 1986 is adhered to in all cases, so that such finalization is completed within the validity period of the bank guarantee in order to ensure that the government revenue is safeguarded. However, in cases where the importers have not submitted the requisite documents in time, it may be ensured that the bank guarantees are kept alive until finalization of project imports so that resultant delay does not adversely affect the interests of revenue." 12. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all that it was required to be done and not only that but the officer of the Department itself has found that the Petitioner had completed everything that is required to be done, for no reasons the assessment has been delayed by Respondent No.1. We are therefore of the considered view that the Petitioner is entitled to the benefit of the circular issued by the Central Board of Excise and Customs dated 4th May, 2011. 14. In that view of the matter, by way of interim order, we direct Respondent Nos.1 and 2 not to encash the bank guarantees till finalization of the project and also not to insist upon renewal of the bank guarantees. 14. Parties would be at liberty to apply before this Court for disposal of the Petition after the assessment i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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