1992 (8) TMI 157 - AT - Customs

Summary

Issues:
1. Registration of contract for Project Import under Customs Tariff Act, 1975.
2. Eligibility of imported goods for concessional assessment under Project Import.
3. Compliance with Project Import regulations.
4. Delay in registration of contract affecting duty assessment.

Analysis:

1. The case involved the registration of a contract for Project Import under the Customs Tariff Act, 1975. The appellants, manufacturers of Data Processing and Computer Software, imported equipment for microfilming of documents. Despite seeking clarification and following the necessary procedures, the application for registration of the contract was rejected by the adjudicating authority.

2. The eligibility of the imported goods for concessional assessment under Project Import was a crucial issue. The lower appellate authority upheld the rejection, stating that the goods were required for a service project and not for manufacturing activity. However, the appellants argued that their activities fell within the scope of industrial plant expansion, similar to cases where concessional assessment was granted for industrial activities.

3. Compliance with Project Import regulations was a point of contention. The appellants had applied for Project Import Contract registration and submitted all required documents but faced delays from the Customs Authorities. Despite the delay, the appellants proceeded to clear the goods under protest to avoid demurrage charges, as no order had been passed even after 16 months of application.

4. The delay in the registration of the contract and its impact on duty assessment was a significant factor in the judgment. The Tribunal found that the appellants had fulfilled all requirements for registration, and the delay was attributed to the Customs Authorities. The Tribunal emphasized that the benefit of Project Import cannot be denied due to delays caused by the authorities.

5. Considering previous judgments and the nature of the appellants' activities, the Tribunal ruled in favor of the appellants. Citing relevant cases where similar activities were deemed eligible for concessional assessment under Project Import, the Tribunal concluded that the imported goods were entitled to such benefits. The judgment set aside the impugned order and allowed the appeal, providing consequential relief to the appellants.