1990 (3) TMI 160 - AT - Customs

Summary

Issues:
- Registration of consignment under Project Import
- Interpretation of Project Import Regulations
- Requirement of a written contract for Project Import

Analysis:

Issue 1: Registration of consignment under Project Import
The appellants imported a Klockner Drum Chipper and requested registration under Project Imports to avail lower duty rates. The Assistant Collector rejected the request, leading to the payment of full duty under protest to clear the goods. The appeal to the Appellate Collector was also rejected, citing reasons like no substantial expansion, lack of a contract, and the machinery not fulfilling the Project Import scope.

Issue 2: Interpretation of Project Import Regulations
The consultant argued that the circumstances necessitated the import due to defects in the indigenous machinery, emphasizing the need for the Chipper in the manufacturing process. The consultant presented various documents to establish a contract under the India Contract Act and satisfy Project Import Regulations. However, the JDR contended that the absence of a written contract and failure to file the Bill of Entry for Project Import under the relevant heading led to the denial of Project Import benefits.

Issue 3: Requirement of a written contract for Project Import
The Tribunal referred to the Customs Tariff Act and Project Import Regulations, highlighting the necessity of a written contract for registering a contract as a Project Import under the specified heading. The proviso emphasized the need for one or more specific contracts. Regulation 3(4) mandated the submission of the original deed of contract for registration, which was not fulfilled in this case. Consequently, the lower appellate authority's decision to reject the appeal was upheld.

In conclusion, the Tribunal found no grounds for interference with the lower authority's decision and dismissed the appeal, emphasizing the essential requirement of a written contract for Project Imports under the Customs Tariff Act and Project Import Regulations.