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Issues involved: Application for waiver of pre-deposit of duty, interest, and penalty u/s Section 112(a) and Section 114A of the Customs Act, regarding the import of Hydraulically Operated Self Propelled Piling Rig under Notification No. 21/2002-Cus. for road construction diverted to Delhi Metro Rail Project.
The applicant imported a rig under Notification No. 21/2002-Cus. for road construction but was diverted to the Delhi Metro Rail Project, leading to a dispute on the intended use of the imported goods. The applicant's argument revolves around the duty already being paid during the investigation and the discrepancy in the imposition of penalty under Section 114A of the Customs Act, which was beyond the scope of the show-cause notice invoking Section 112(a). Regarding interest, the applicant contests the demand based on alleged violation of post-import conditions, claiming the rig was indeed used for road construction during the implementation of the metro rail project in Delhi. On the other hand, the Revenue asserts that the applicant breached the conditions of the notification, justifying the imposition of interest and penalty. The Tribunal acknowledged the duty payment in 2007 and the dispute over the notification conditions, leading to a prima facie merit in the applicant's case. Consequently, the pre-deposit of interest and penalty was waived for the appeal hearing, with recovery stayed during the appeal's pendency, thereby allowing the stay petition.
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