ESSAR STEEL LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) In these civil appeals the controversy lies on the interpretation of the interim order dated 9.9.1991 passed by this Court in a stay application in Civil Appeal Nos. 3152-53 of 1991 filed by the Department.

(2.) Essar Steel Limited ("the importer" for short) submitted the Bills of Entry on which provisional assessment was made under Project Imports Regulations,1986. The declared value was DM 46.75 million on which the importer paid Rs. 7.93 crores as duty. This was not accepted by the Department. They issued a show cause notice dated 24.10.1988. They made provisional assessment based on total transaction value of DM 84.15 million. Thus, the Department increased the transaction value from DM 46.75 million to DM 84.15 million, i.e., addition of DM 37.40 million. This increase was made by the Department by loading the assessable value on account of certain technical fees/charges. Under the provisional assessment, the Department accordingly called upon the importer to pay Rs. 13.95 crores. As stated above, the importer had paid Rs. 7.93 crores, unconditionally, according to the declared value. After loading they paid a further amount of Rs. 6.02 crores under protest. Thus, the disputed amount of duty paid by the importer was Rs. 6.02 crores on account of the increased transaction value of DM 37.40 million. The amount was paid on 15/16.12.1988 by the importer. On payment, the goods were cleared on 15/16.12.1988.

(3.) The figures given in this judgment are rounded off to even numbers for the sake of convenience.