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TMI Blog2005 (10) TMI 173X X X X Extracts X X X X X X X X Extracts X X X X ..... with M/s. Cairns Energy Pvt. Ltd. for execution of the above project by carrying out engineering, designing, procurement construction, fabrication and installation of two platforms, pipelines and onshore gas processing plant etc., they were not required for the project and hence the condition in the notification had been violated by them. On the other hand, the importers contend that the goods were required for the project as certified by the Directorate General of Hydro Carbon who is the authority prescribed under the Notification for issue of certificate of requirement, and that there is no stipulation in condition 31 that imported goods have to be actually used in the said project; and therefore sale of seamless pipes is not contrary to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vailing benefit of exemption in terms of Notification No. 21/2002-Cus., dated 1-3-2002 on the basis of essentiality certificate issued by the Director General of Hydro Carbon, New Delhi as per condition 31 of the Notification and sold goods in dispute as scrap after project confiscation and imposed a penalty of Rs. 5 lakhs on them under Section 112 of the Customs Act. 2. Confiscation arises for the reason that the goods were not found to be scrap but seamless pipes not utilized for project work, and non-utilization resulted in non-fulfillment of post importation condition in Notification No. 21/2002, giving rise to invocation of Section 111(o); demand confirmation results in denial of benefit in terms of the notification; the extended perio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions . The stand of the Department is that since the seized goods were in excess of the quantity of pipes actually used in the Laxmi Field Project Phase I by the importers who had entered into a contract dated 29-6-2001 with M/s. Cairns Energy Pvt. Ltd. for execution of the above project by carrying out engineering, designing, procurement construction, fabrication and installation of two platforms, pipelines and onshore gas processing plant etc., they were not required for the project and hence the condition in the notification had been violated by them. On the other hand, the importers contend that the goods were required for the project as certified by the Directorate General of Hydro Carbon who is the authority prescribed under the Notif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tha intended for use in the manufacture of petrochemicals and extending the benefit there under to the quantity of raw naphtha which had evaporated and hence not consumed in the manufacture of petrochemicals. 7. In the case of Commissioner of Central Excise Chennai v. Q Max Test Equipment Pvt. Ltd. [2003 (159) E.L.T. 665 (Tri. Chennai)] the Tribunal has held in the context of Notification No. 56/88 granting exemption to goods required for use of testing of LSI/VLSI etc. that On my careful consideration of the submissions, as well as the findings recorded by learned Commissioner, I am of the considered opinion that the finding recorded by the Commissioner (Appeals) is just, proper and legal and does not require any interference at our hands. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... printed circuit board, the benefit has to be extended. In the present case, M/s. Electronic Corporation of India Ltd., a Govt. of India Enterprise has certified that the item is for testing of the said LSI/VLSI etc. In view of absence of any end-use condition in the notification, the benefit cannot be denied. It cannot also be included that the goods are required and sold for the manufacture of items falling under chapter heading 85.42 and it is not necessarily required to go into the final product. A plain reading of the notification indicates that it is enough if it is required for the manufacture of goods falling under chapter heading 85.42. The benefit for the testing equipment which are utilized for testing equipment falling under chap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... view recorded by ld. Member (Judicial), who disagreed with the order recorded by ld. Member (Technical) that the benefit of the notification was not available to the respondents, has been concurred with by third member, and by majority order, the appeal of the revenue was dismissed. The Tribunal held that the expression for use is on a higher footing than the expression required for use, and in the absence of the expression specifically used for manufacture , has extended the benefit of Notification No. 57/88 to LSI/VSLI tes. equipments falling under Chapter 85.42 and sold to customers other than manufacturers of goods falling under Customs Tariff Heading 85.42 and not actually used for manufacture of electronic Integrated Circuits and Micr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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