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M/s. Century Paper Pulp Versus Commissioner of Customs (Port) , Kolkata

2017 (9) TMI 1017 - CESTAT KOLKATA

Project import - concessional rate of duty - import of second hand capital goods without a license under the import policy only under Project Import Regulations on actual user basis - confiscation - penalty - Held that: - it is evident that the second hand capital goods were used in the project, for which concessional rate of duty was availed - the provisional assessment which were ordered at the time of import were finalized denying the benefit of concessional rate of duty. Accordingly, differe .....

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pellant 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 the goods ordered by the Adjudicating Authority under section 111(o) ibid is to be upheld - keeping in view the f .....

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e Appellant Shri S.K.Naskar, AC(AR) for the Respondent ORDER Per Shri V. Padmanabhan 1. The appeal has been filed against Order-in-Original No. KOL/CUS/PORT/15/2014 dated 20.03.2014. 2. The appellant imported certain second-hand capital goods, valued at INR 26,67,82,525/-, into India in the year 1998-99 under the project import scheme. These goods were provisionally assessed at a concessional rate of customs duty on execution of bond and security of ₹ 50.00 lacs. These capital goods were m .....

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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 bee .....

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present appeal before the Hon ble Tribunal against the above referred order wherein they are disputing the said imposition of interest, redemption fine and penalty. The differential duty liability has already been paid. 3. With the above background we heard Shri S.C.Jain, Advocate and Shri S.K.Naskar, AC(AR) for the parties. 4. Ld. Counsel for the appellant submitted as followings: (i) The differential duty liability has already been paid by the appellant, since imported goods could not be used .....

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bmitted that order for confiscation and imposition 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 .....

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policy at the relevant time, permitted import of second hand capital goods having maximum residual life of 5 years without license under Project Import. There was a further condition that the second hand capital goods shall be used at the declared place and further shall not be transferred, sold or otherwise disposed of within a period of 5 years from the date of import. The appellant, after importation of the second hand capital goods, have failed to set up the manufacturing plant. After impor .....

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ded and the same has also been paid by the appellant. 7. The dispute in this appeal is with reference to the order for confiscation as well as imposition of penalty and redemption fine. At the time of import, the second hand capital goods were allowed to be imported without any import 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 li .....

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of improperly imported goods as follows: (o) any goods exempted, subject to any condition, from duty or any prohibition in respect of the import thereof under this Act or any other law for the time being in force, in respect of which the condition is not observed unless the non-observance of the condition was sanctioned by the proper officer. 9. In the case of the appellant, the goods were allowed to be imported at concessional rate and relaxation of Import Trade Control Regulations, only subjec .....

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