TMI Blog2017 (9) TMI 1017X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to be imported at concessional rate and relaxation of Import Trade Control Regulations, only subject to actual user condition and observance of the Project Import Regulations. Since the appellant has failed to satisfy the associated condition, it is to be considered that the goods are liable for confiscation under the provisions of Section 111(o) ibid - The appellant has claimed that second hand capital goods were allowed for import freely and further that actual user condition will no longer be applicable since five year period after import is already over. Since the goods were never used for the purpose for which it was imported, the actual user condition has been violated. Consequently, we are of the view that the confiscation of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts for the above imports were finalized vide the Order-in-Original No. S37C(Misc.)-27/2012A(6) dated 20.03.2014 wherein the following has been held against the appellant: a) Differential duty liability of INR 94,23,839/- has been confirmed against the appellant; b) The said duty has to be paid with applicable interest; c) The imported capital goods have been held liable for confiscation (with an option to redeem the same on payment of fine of INR 2,66,00,000/-) under Section 111(o) of the Customs Act, on account of the following reasoning: i) Post import condition of the Project Import Scheme has been violated as the goods have not been used for setting up a manufacturing plant as agreed by the appellant at the time of im ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of penalty may be set aside. 5. Ld. DR for the department on the other hand justified the impugned order. He submitted that the goods were liable for confiscation for violation of conditions under which concessional rate of duty was availed by the appellant under the Project Import Regulations. He also submitted that second hand capital goods were allowed for import without a license under the import policy only under Project Import Regulations on actual user basis. 6. After hearing both sides and perusal of record we find that various second hand capital goods were imported by the appellant. At the time of import, they claimed the benefit of Project Import Regulations. In terms of Regulations they availed concessional rate of du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... port license subject to the condition that it shall be used on actual user basis for the project for which the goods were imported. It is to be noted that the second hand capital goods were allowed for import without license conditionally. The investigation undertaken by the Revenue has concluded that the appellant has violated the conditions under which goods were imported. The second hand capital goods were never used for setting up the manufacturing plant of paper as originally contemplated. Hence, the condition of actual user has been violated and hence there is contravention of Import Trade Control and the goods become prohibited goods. 8. Section 111(o) of the Customs Act, 1962 provides for confiscation of improperly imported goods ..... X X X X Extracts X X X X X X X X Extracts X X X X
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