9911796707
TMI Blog2012 (8) TMI 214X X X X Extracts X X X X X X X X Extracts X X X X ..... CIL ) applied for registration of a project contract under purchase order No. IMP/36006 dated 29/04/1992 in respect of goods with the CIF value of DM 15,75,200/- under the Project Import Regulations, 1986. The said purchase order covered machinery worth DM 14,25,200/- (CIF) and drawings and designs worth DM 1,50,000/- (CIF) and the same was registered provisionally. The appellant imported the goods vide Bill of Entry No. 1391 dated 04/06/1993 and declared the goods as: (i) Twin Screw Compounder type ZSK 92/M 385; and (ii) Designs and Drawings. The item at serial No.(i) above was classified under Heading No. 9801.00 while the drawings and designs were classified under 4906.00. The machinery was assessed at 35% duty while the drawings and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lant vide letter dated 25/08/1995 submitted the said challan and requested for refund of the security. The department, however, did not grant the refund, in spite of a reminder by the appellant vide letter dated 14/01/1998. 2.3. On 18/03/1998 the department issued a show cause notice to the appellant alleging that there was a short levy of duty since value of drawings and designs had not been included in the value of machinery and the same was liable to be added to the value of the import under Rule 9(1)(b)(iv) of the Customs Valuation Rules, 1988 and the drawings and designs were liable to be assessed under Heading 8479.89 as machinery. The appellant contested the demand. The case was adjudicated vide order dated 19/03/1999 by the Assista ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... les . In other words, the proposition in the show cause notice has been negatived by the adjudicating authority in the order passed by him. Nevertheless, he has proceeded to assess the value of the drawings and designs (not under Heading 98.01 as Project Imports) on the ground that the sponsoring authority has recommended project import benefits for a value of only DM 14,25,200/- and has proposed to classify the drawings and designs under Heading No. 8479.89 applicable to machinery and has applied a rate of duty of 80% BCD + 10% CVD applicable to machinery. The learned counsel argues that the order has traversed far beyond the show cause notice and has clearly denied the benefit of inclusion under project imports in respect of drawings and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roject Imports by the sponsoring authority. Nevertheless, they want to classify the drawings and designs under Heading 8479.89 as machinery and demand duty at the rate applicable to machinery. This stand of the department is totally untenable in law and has to be set aside. If the department wants to include the cost of the drawings and designs in the value of machinery then the classification of drawings and designs should be under Heading 98.01 as the machinery has been imported and assessed under Project Imports. If the benefit under Heading 98.01 cannot be given to drawings and designs for whatever reasons, then they have to be assessed independently on merits as per the classification applicable to drawings and designs. Drawings and de ..... X X X X Extracts X X X X X X X X Extracts X X X X
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