2024 (2) TMI 205 - AT - Customs

Project Import - goods directly relatable to the project or not - Essentiality Certificate to be issued by the Secretary, Government of Tripura was infact issued only by the Deputy Secretary - HELD THAT - The Hon ble Supreme Court in the case of COMMR. OF CUS. (IMPORTS), MUMBAI VERSUS TULLOW INDIA OPERATIONS LTD. 2005 (10) TMI 502 - SUPREME COURT has held that The essentiality certificate, thus, must be treated to be a proof of the fact that the importers have fulfilled the conditions enabling them to obtain the benefit under the exemption notification. Emphasis supplied The Appellants have imported all the goods for the Power Project and there is not dispute on this count by the Revenue. When the Project imports are made, several of the goods have to be imported, keeping in view the future Repairs and Maintenance activity. Therefore, we do not agree with the findings of the Adjudicating Authority that the goods in question were not part of the Project Imports. The very fact that Essentiality Certificate for these goods have been issued by the Deputy Secretary initially and was subsequently ratified by the Secretary, Government of Tripura shows that these goods are required for the Project only. Before the OIO was passed, the appellant has procured the Essentiality Certificate duly signed by the Secretary, Government of Tripura which ratifies the earlier Certificate issued by the Deputy Secretary. It is also noted from Serial No. 507 of this Notification that the goods required for setting up of any Mega Power Project would be eligible for the exemption. The goods in question satisfy this condition, which is not being disputed as can be seen from Para 8.1 of the Order-in-Appeal. Therefore, the Appellant has fulfilled the conditions specified under Notification No. 12/2012- Cus dated 17/03/2012. The impugned order is set aside - appeal allowed.

Summary

Issues involved:
The issue involved in this case is whether the goods imported by the Appellant for a Power Project were eligible for full exemption from Customs Duty under Notification No. 12/2012-Cus dated 17/03/2012, as amended.

Summary of Judgment:

Issue 1: Eligibility for exemption under Notification No. 12/2012-Cus:
The Appellant imported goods for a Power Project under Project Import basis with full exemption from Customs Duty under Notification No. 12/2012-Cus. The Adjudicating Authority held that the goods were not directly related to the project as the Essentiality Certificate was issued by the Deputy Secretary instead of the Secretary, Government of Tripura. The Authority confirmed a demand of Rs.19,14,41,111/- on the provisionally assessed Bills of Entry. The Commissioner (Appeals) upheld the decision. The Appellant contended that they obtained a valid Essentiality Certificate signed by the Secretary, Government of Tripura before the Order-In-Original was passed, ratifying the earlier Certificate. They argued that all imported goods were essential for the project. The Tribunal found that the goods were indeed imported for the Power Project, fulfilling the conditions of the Notification. The Tribunal set aside the lower Authorities' decision and allowed the Appeal with consequential relief.

Key Points:
- The Appellant imported goods under Project Import basis with full exemption under Notification No. 12/2012-Cus.
- The Adjudicating Authority held the goods were not directly related to the project due to an issue with the Essentiality Certificate.
- The Commissioner (Appeals) upheld the decision of the Adjudicating Authority.
- The Appellant obtained a valid Essentiality Certificate signed by the Secretary, Government of Tripura before the Order-In-Original was passed.
- The Tribunal found that the goods were essential for the Power Project and fulfilled the conditions of the Notification.
- The Tribunal allowed the Appeal and set aside the lower Authorities' decision.

Case law reference:
- The case law of Commr. of Customs (Imports), Mumbai Vs. Tullow India Operations Ltd.-2005 (10) TMI 502 (SC) was cited to support the argument that subsequent production of a Certificate can fulfill the conditions for exemption.

Legal Principles:
- The Tribunal emphasized the importance of the Essentiality Certificate as proof of fulfilling conditions for exemption under the Notification.
- The Tribunal highlighted that goods required for setting up a Mega Power Project were eligible for exemption under the Notification.

Final Decision:
The Tribunal found that the Appellant had fulfilled the conditions specified under Notification No. 12/2012-Cus dated 17/03/2012 and allowed the Appeal with consequential relief.