VBC INDUSTRIES LTD. Vs. COMMISSIONER OF CUSTOMS, CHENNAI

JUDGEMENT

(1.) THE appellants were permitted by the Government of India to manufacture ammonium nitrate and nitric acid vide industrial licence granted on 25 -7 -1989. On an application made by the applicants, they were granted a licence on 24 -9 -1990 by the Chief Controller of Imports and Exports for the import of the capital goods required for setting up a new undertaking. They applied for registration of six contracts under the Project Import Regulations with Visakhapatnam Custom House, in 1991. The registration was granted by the Visakhapatnam Custom House on 10 -9 -1991 and 11 -9 -1991. Capital goods covered by five contracts were imported, assessed to duty as Project Imports, under Tariff Heading 98.01 of the Customs Tariff and cleared for home consumption. Certain capital goods, imported, covered by one of the contract i.e. dated 2 -11 -1990, viz., centrifugal air compressor and spares, were cleared and deposited in a Custom Bonded Warehouse, after assessment of an into -bond Bill of Entry on 30 -9 -1991 under Tariff Heading 98.01.

(2.) AFTER hearing both sides and considering the matter, it is found : -

(3.) IN view of the findings arrived herein, the order is set aside and appeal allowed with consequential benefit, as per law.