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Issues:
Registration of contract as Project Import under Heading 84.66 of the Customs Tariff; Refusal of Project Import benefit by Asstt. Collector; Rejection of refund claim; Interpretation of statutory provisions and regulations regarding Project Imports. Analysis: The appellants, engaged in manufacturing crown corks, applied for registration of a contract as Project Import under Heading 84.66 for importing machinery. Despite delays in registration, they believed they were entitled to the Project Import benefit. However, the Customs Department required specific documentation and approval from the sponsoring authority, as per regulations. The Directorate of Industries indicated prerequisites for Project Import approval, including premises and licenses. The contract was registered after goods were warehoused, leading to the denial of Project Import benefits. The appellants argued that their early application justified registration, but the tribunal disagreed, citing the necessity for compliance with regulations before importation. The tribunal referenced a case involving Saurashtra Cement & Chemical Industries Ltd., emphasizing that once a contract is registered, the Customs authorities cannot revoke it arbitrarily. However, the tribunal found that the delay in registration and lack of necessary endorsements on the import license prevented the appellants from claiming the Project Import benefit under Heading 84.66. Additionally, in the case of Zenith Electronics Ltd. and Bharat Heavy Electricals Ltd., it was established that the onus is on importers to prove eligibility for concessional duty rates before clearance, which was not met in this instance. The tribunal concluded that the appellants failed to fulfill the requirements for Project Import benefits and upheld the decision to deny the appeal. In summary, the tribunal rejected the appellants' claim for Project Import benefits under Heading 84.66 due to non-compliance with regulatory requirements and delays in registration. The judgment highlighted the importance of adhering to statutory provisions and providing necessary documentation before claiming concessional duty rates for imported goods. The decision affirmed the denial of the appeal and emphasized the need for importers to meet all prerequisites for availing of special import benefits.
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