2009 (8) TMI 1006 - AT - Customs

Summary

Issues:
- Classification of imported goods as components or a complete plant
- Denial of exemption from duty under Notification No. 17/2001-Cus
- Confiscation of goods under Section 111(m) of the Customs Act, 1962
- Imposition of fine and penalty on the importer

The judgment addresses the issue of whether goods imported by the appellant, including screen drum, electrical cabinets, geared motors, conveyor belts, and bearings, should be classified as components of a complete hot mix plant or not. The Commissioner of Customs held that these goods were only components and not a complete plant, leading to the denial of duty exemption under Notification No. 17/2001-Cus. The value of the imported goods was fixed at DM 5.50 lakhs CIF. Additionally, the goods were confiscated under Section 111(m) of the Customs Act, 1962, with an option for redemption upon payment of a fine of Rs. 5,00,000/-, and a penalty of Rs. 1,00,000/- was imposed on the importer.

The Tribunal referred to a previous case involving a similar issue, IVRCL Infrastructures and Projects Ltd. v. Commissioner of Customs, where the Tribunal rejected the plea that certain imported components constituted a complete plant. In that case, the fine in lieu of confiscation was reduced from Rs. 5,00,000/- to Rs. 1,00,000/-, and the penalty was set aside. Applying the ratio of the previous decision to the present case, the Tribunal upheld the impugned order but reduced the fine to Rs. 1,00,000/- and set aside the penalty. The appeal was partly allowed based on this decision.

In conclusion, the Tribunal upheld the decision that the imported goods were components and not a complete plant, leading to the denial of duty exemption. The confiscation of goods under Section 111(m) of the Customs Act, 1962 was maintained, with an option for redemption on payment of a reduced fine of Rs. 1,00,000/-. The penalty imposed on the importer was set aside in line with the previous decision's ruling. The appeal was partly allowed, with the fine reduced and the penalty set aside.