PSA SICAL TERMINALS LTD. Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) The appellants are aggrieved with the Order -in -Original No. 18/2003, dated 4 -7 -2003 confirming demands of over Rs. 21,60,84,019/ - on the ground that they have not complied with the terms of the Concessional Notification No. 28/97 -Cus., dated 1 -4 -97. In terms of the said notification, under proviso to Section 28(1) of the Customs Act, there is also confirmation of interest besides an order of confiscation of capital goods, imported under various bills of entry. However the same has been directed to be released on payment of fine of Rs. 4.50 crores. There is a penalty of equal amount of the duty demanded in the matter.

(2.) The appellant is a private container terminal operator at Tuticorin Port. They had imported various types of gantry cranes, rail mounted quay side container cranes with accessories and two units of rail mounted quay side container cranes and two units of rubber tyred gantry cranes against EPCG Licence No. 0430000001, dated 20 -8 -99 and claimed the benefit of the said notification for clearance of the goods in terms of the said licence.

(3.) In terms of the conditions of the said licence they have to fulfil export obligation equivalent to 46 million US dollar. As per condition 2 of the Notification 28/97 -Cus., dated 1 -4 -97 they were to execute a bond with surety or security as specified by the Assistant Commissioner undertaking to fulfil the export obligation as Nil%, 10%, 20%, 30%, and 40% during first, second, third, forth and fifth year respectively and accordingly they executed bond with Bank Guarantee equivalent to the concessional duty availed.