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Issues: Differential duty demand on re-imported Gas Turbine Generator (GTG) under project import scheme; applicability of Customs Notification No. 94/96 for duty exemption; valuation of replaced High Pressure Turbine (HPT); invocation of extended period of limitation based on suppression; plea of bona fide belief against limitation.
Analysis: 1. Differential Duty Demand and Customs Notification: The judgment revolves around the differential duty demand on the re-imported Gas Turbine Generator (GTG) under a project import scheme. The appellants claimed the benefit of Customs Notification No. 94/96, which exempted the value of exported goods from duty payment. However, the learned Commissioner demanded duty based on the value of the High Pressure Turbine (HPT) replaced during repairs abroad, valuing it at USD 2.07 million under Rule 5 of the Customs Valuation Rules. The appellants argued that the case fell within the purview of the Notification or should have been valued under Rule 8. The dispute primarily focused on the duty liability concerning the re-imported GTG and the valuation methodology adopted for the replaced HPT. 2. Extended Period of Limitation and Suppression Allegation: The judgment delves into the invocation of the extended period of limitation by the learned Commissioner based on the grounds of suppression. The show-cause notice issued in October 2005 raised the demand for duty, invoking the longer limitation period due to alleged suppression by the assessee. The Commissioner found that the assessee had not disclosed the re-import aspect adequately, leading to the invocation of the extended limitation period. However, the appellants contended that the declaration attached to the bill of entry, though in a printed format, clearly indicated the re-importation after repairs abroad. The argument emphasized the absence of suppression and the bona fide belief held by the assessee, citing a previous Order-in-Original that favored the assessee's position. 3. Bona Fide Belief and Limitation Bar: The judgment considered the plea of bona fide belief raised by the appellants against the invocation of the extended period of limitation. The appellants referred to a previous Order-in-Original that supported their belief regarding the valuation of returned goods after repairs abroad. The judgment acknowledged the absence of challenge by the Revenue to the findings in the earlier order, indicating a final and binding nature. The Tribunal, after examining the evidence, found merit in the appellant's argument, suggesting that the demand was barred by limitation due to the lack of suppression and the genuine belief held by the assessee. 4. Outcome and Relief: As a result of the analysis, the Tribunal decided in favor of the appellants, waiving the pre-deposit and staying the recovery of duty and penalty amounts. Additionally, the application for out-of-turn disposal of the appeal was granted, considering the significant stakes involved in the case. The appeal was scheduled for a specific date to proceed with further proceedings, ensuring a fair and timely resolution of the matter.
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