9911796707
TMI Blog2022 (11) TMI 60X X X X Extracts X X X X X X X X Extracts X X X X ..... nd the penalty as was confirmed vide original adjudicating authority has been upheld. 2. The facts in brief relevant for present adjudication are that the appellants have been engaged in import of goods for the project meant for Prayagraj Thermal Power Project Generation of Co. Ltd. The importer - appellants submitted a letter No.165/24/15-43/09 dated 12.03.2013 issued by Uttar Pradesh State in respect of Prayagraj Thermal Power Project about their eligibility for duty exemption as per Project Import Regulations, 1986 ('PIR' hereinafter). The appellants also executed an indemnity bond and a cash security deposit in the form of Bank Guarantee. The details for both the appeals are as follows:- Appeal No. Show Cause Notice No. & Dt. Dem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the non-compliance thereof has wrongly been held as a ground for denying the substantial benefit of imports at 'nil' rate of duty. It is submitted that Commissioner (Appeal) has ignored the factum of eligibility of the appellants under PIR rather has given more weightage to procedural lapse. The order is liable to be set aside on this score only. It is further submitted that the documents as required under Regulation 7 could not be submitted as the appellants had not received those documents from Prayagraj Power Generation Company Ltd. Hence, the delay was beyond their control. The obligation of appellants of being a registered contractor has otherwise been duly fulfilled. Orders under challenge are accordingly, prayed to be set aside. 6. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of this Regulation and any other document that may be required by the proper officer for finalization of the contract." 9. The perusal of the provision reveals that the language used therein does not make the provision mandatory. There are conditions in the statute that some of those may be substantive, others may be mandatory and based on consideration of policy and some others may merely belong to the area of procedure. To my opinion it will be erroneous to attach equal importance to the non-observance of all conditions irrespective of the purpose they were intended to serve. Seen in the light of this prospective, I opine that the conditions of provision / Regulation 7 are not mandatory, they are merely directory only for the following r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oods imported vide said Bills of Entry. (b) The bond and Bank Guarantee required for registration of contract were accepted on 22.04.2015. (c) The contract of the appellants was registered under registration No.01 & 02/2015. (d) Letter issued by Uttar Pradesh State dated 12.03.2013 (as already mentioned above) was also filed wherein it was certified that the Prayagraj Thermal Power Project is eligible for duty exemption as per PIR and Chapter 98.01 of Customs Notification No.12/20120-Cus. dated 17.03.2013. Thus, apparently and admittedly, there is no dispute that the appellants were eligible for the benefit under PIR Regulations. The adjudicating authority below has relied upon the decision of Hon'ble Apex Court in Mihir Textiles (Su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld that there is no reason to take a view different from that expressed by the Tribunal more particularly since there is no requirement of an Installation Certificate to be furnished by the assessee in the language of Regulation 7 above. 14. In view of entire above discussion, I hold that substantial benefit of exemption from Customs duty has wrongly been denied by invoking procedural provision which is not at all mandatory. The findings are therefore, set aside. In view of entire above discussion, I hereby set aside the impugned order. However, the cases are remitted to the original authority for finalizing the assessment in terms of project contract in the light of reconciliation statement filed. The appeals are ordered, accordingly. [P ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
