TMI Blog2018 (9) TMI 47X X X X Extracts X X X X X X X X Extracts X X X X ..... ection), had cleared/approved the project imports of the appellant for import of capital goods for essential setting up of project at Uttaranchal in terms of Customs N/N. 230/86-Cus dated 03.04.1986. This has been addressed to the Assistant Commissioner of Customs, Customs House, Kolkata - However, the regulation 5 is not a condition determining eligibility of the imported goods for the benefit of concessional rate of assessment under Project Regulation. It is only a procedural requirement. The importer shall apply as soon as he has obtained the clearance from the sponsoring authority under Regulation 5(2) of the PIR - Also, no prescribed time limit for obtaining clearance from the sponsoring authority. Both the lower authorities have no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on on 10.01.2006 for their recommendation letter for duty concession under the Project Import Scheme. The Sponsoring Authority endorsed the list of capital goods eligible for duty concession under Chapter 98.01 of Customs Tariff Act, 1975 in terms of Customs Notification No.230/86-Cus dated 03.04.1986. Thereafter, the appellant filed application for registration of contract. On scrutiny of records of the appellant, the Assistant Commissioner of Customs, vide letter dated 03.08.2006 duly registered the project under Project Import Regulation for setting up a new project at Haridwar, Uttaranchal. A PD Bond was executed and security deposit of ₹ 20,02,500/-, being 2% of the CIF value was executed. Subsequently, the appellant imported mac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ., Kolkata, is liable to pay the above duty immediately. (b) The amount of ₹ 20,02,500/- already available with the department as security deposit vide Accounts department receipt No.M-74 dtd. 1-8-06 is hereby appropriated and adjusted against this confirmed demand. For the balance amount of ₹ 11,28,240/- the said importer is directed to deposit /pay the same immediately. (c) The importer is directed to deposit/pay the amount of duty confirmed within a period of 15 days from the receipt of this order, failing which the interest at the applicable rate will become payable on the said amount. (d) The provisionally assessed Bills of Entry are finalized accordingly. (e) This order does not take into account an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der of the lower authorities. 4. Heard both sides and perused the appeal records. 5. We find that the issue in this appeal is regarding demand of customs duty on the ground that the appellant had irregularly taken duty concession under Project Import Regulation, 1986 (PIR) in as much as they have not complied with sub-clause (i) of Regulation 5 of the PIR as the contracts have been registered by the proper officer at the port after importation of the goods and warehouse. 6. We also find that as per Rule 5(2) of the PIR, any importer desiring to claim the benefit of Project Imports, shall get a clearance from the Sponsoring Authority. In the present case the sponsoring authority i.e. the Ministry of Commerce and Industries, Departme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ade by proper officer of Customs permitting clearance for home consumption or deposit in warehouse. This restriction is absent in Regulations 4 and 5 of the present Regulation under Chapter Heading 98.01. Regulation 4 specifically omit what refers to the condition regarding registration being done before depositing in a warehouse and only states before clearance for home consumption. We find that both the lower authorities have not gone through the provisions carefully and had denied the benefits on incorrect interpretation of the statutory provisions. In the present case the appellants had registered the contract before clearance of the warehoused goods and hence they are eligible for the benefit of the project import. 9. In view of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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