9911796707
TMI Blog2009 (8) TMI 1067X X X X Extracts X X X X X X X X Extracts X X X X ..... etails :- (i) Customs duty amounting to Rs. 2,57,51,018/- along with applicable interest under Section 28AB of Customs Act, 1962 (the Act) demanded from Dharti; (ii) Penalty of Rs. 2,57,51,018/- imposed on Dharti under Section 114A of the Act; (iii) Penalty of Rs. 10,000/- imposed on Dharti under Section 117 of the Act; (iv) Penalty of Rs. 10,000/- imposed on Shri B. Krishna Murthy, General Manger of Dharti under Section 117 of the Act; (v) Penalty of Rs. 10,000/- imposed on Shri A. P. Vitthal, Executive Director of Dharti under Section 117 of the Act; and (vi) Confiscation of six trailers belonging to M/s Bombay Goods Freight Carrier, Chennai under Section 115 of the Act with option to redeem the same on payment o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Commissioner found that a dredger was functional without self floating pipes. They were not integral parts of a dredger. This fact was also apparent from the fact that import of the impugned pipes was paid for separately to M/s. Danyang Pacific Rubber and Plastic Products Co. Ltd., China (DPRC) under a separate Letter of Credit (LC). Payment for the balance cost was made against another LC to M/s Mean Good International Ltd., Singapore (Meangood), the supplier of the consignment. Self floating pipe of 650 mm diameter could not be operated with the dredger under import, the discharge pipe of which was of 850 mm diameter. A communication recovered from the appellant company indicated that 650 mm diameter pipes were intended for use elsew ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... when imported and presented for assessment as such. The same does not apply when such articles are imported as parts of a complete machine. The appellants had explained during the proceedings that depending on the distance from the shore where the dredger operated, floating pipes of 850 mm dia and those of 650 mm dia could be used with the aid of reducers. When the dredger was at a distance from the shore, floating pipes of 650 mm would be used with floating pipes of 850 mm dia attached to the dredger. This submission of the appellants appears correct. Prima facie, these pipes have to be held as parts of dredger classifiable under CTH 8905.10 and were correctly allowed the benefit of Notification No. 21/2002-Cus., dated 1-3-2002 at the tim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nees. Allegation that impugned goods were paid for under a separate LC to DPRC was supposed to show that the entire consignment was supplied by Meangood does not appear correct. Section Note 2(a) of Section XVII does not apply when parts are presented for assessment along with rest of the machine. Therefore, prima facie, the charge of mis-declaration of description and classification of the impugned goods fails. 6. In the circumstances, we find that prima facie, the impugned order of demand of duty from Dharti, imposition of penalty on them, confiscation of the pipelines and penalties imposed on S/Shri B. Krishna Murthy, General Manager of Dharti and A. P. Vitthal, Executive Director of Dharti are not sustainable. Accordingly, we order wa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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