SUNDARAM FINANCE LTD. Vs. CC

JUDGEMENT

(1.) These are appeals against two orders passed by the Commissioner of Customs, Trichy. Appeal Nos. C/44/2002 (filed by M/s. Sundaram Finance Ltd.), C/116/2002 (by M/s. E.T.K. Softech (P) Ltd.), C/115/2002 (by Shri R. Raghavan, Managing Director of E.T.K. Softech (P) Ltd.), C/117/2002 (by Shri K. Kannan, Director of E.T.K. Softech (P) Ltd.) and C/118/2002 (by Shri N.M. Parthasarathy, Chairman and Managing Director of E.T.K. International Ferrites Ltd.) are against the Commissioner's Order No. 66/2001 dated 13.12.2001 passed in adjudication of show -cause notice No. 14/99 -DRI dated 2.5.2000 issued by the Directorate of Revenue Intelligence, Chennai. Appeal Nos. C/108/2002 (by M/s. ICICI Bank Ltd., erstwhile Bank of Madurai Ltd.), C/131/2002 (by M/s. O.R.J. Electronic Oxides Ltd.) and C/119/2002 (by Shri N.M. Parthasarathy) challenge the Commissioner's Order No. 65/2001 dated 13.12.2001 passed in adjudication of show -cause notice No. 11/99 -DRI dated 2.5.2000.

(2.) The impugned proceedings pertain to capital goods imported under 100% EOU Scheme from Singapore and cleared through Custom House, Tuticorin under two Bills of Entry for Warehousing. The two importers/100% EOUs are M/s. E.T.K. Softech (P) Ltd., Ranipet and M/s. O.R.J. Electronic Oxides Ltd., Pudukottai, both licensed under Section 58 of the Customs Act to operate as private warehouses for goods imported by them.

(3.) Bill of Entry No. 109 dated 5.11.98 was filed jointly by M/s. Sundaram Finance Ltd. [SFL, for short] and M/s. E.T.K. Softech (P) Ltd. [ETKSL, for short] for clearance of capital goods which were declared to have been imported from M/s. International Product and Technology Inc. USA [IPTE, for short], and to be capable of manufacturing Iron Oxide (Electronic Grade), with a production capacity of 5000 MTs per annum. The goods were imported, under 100% EOU Scheme, on the strength of permission given by the Development Commissioner, MEPZ, Chennai. They were one Venturi Scrubber, one Wet Oxidation Equipment (Absorber) and 24 Solar Modules (Concentrating Solar Collectors) totally valued at US 7,164,993 (C&F) as per Invoice No. 379 P dated 25.9.98 and were cleared to bonded warehouse without payment of duty under Notification No. 53/97 -Cus. dated 3.6.97 (as amended). The value of the goods had been paid (to M/s. IPTE) on behalf of M/s. ETKSL by their financiers viz. M/s. SFL under a Lease Agreement wherein they were 'lessee' and 'lessor' in respect of the goods.