LAWS(CE)-2006-9-195

RELIANCE INDUSTRIES LTD. Vs. COMMISSIONER OF CUSTOMS

Decided On September 06, 2006
RELIANCE INDUSTRIES LTD. Appellant
V/S
COMMISSIONER OF CUSTOMS Respondents

JUDGEMENT

(1.) THIS Order disposes off two Appeals filed against Order -in -Original No. CAO/No. 2000/CAC/CC -KPS dated 11th January, 2000 passed by Commissioner of Customs, Mumbai. Appeal No. C/301 of 2000 -Mum. has been filed by M/s. Reliance Industries Ltd. (RIL for short), Appeal No. C/189/2001 -Mum. has been filed by the Department. Appeals taken altogether other disputes, all the substantial issues raised in the Show Cause Notice. We would therefore, start with the facts and allegations as contained in the Show Cause Notice No. SG/MISC -138/IVK/96SIIB//S/10 -48/RK/97 SUB dated 24.3.1998. which was adjudicated, by the impugned Order.

(2.) BRIEFLY stated, the facts are that on or around 7th June 1994, RIL imported through Courier 7 (seven) cartons which were cleared as Company Manuals of No Commercial value. Upon investigation, the department came to believe that cartons in question contained printed matter in the nature of FEEP (front end engineering package). Further verification of all details revealed that these FFEP were part of Agreements entered into by RIL with M/s. ICIC and P/John Brown for establishment of a plant in India for the manufacture of Purified teraphthalic acid (PTA). These agreements are as follows:

(3.) APART from the above, RIL also entered into an Equipment Supply Agreement dated 20.1.1995 with M/s John Brown for supply of equipment for the said PTA plant that they were to establish at Hazira near Surat. Contracts for the supply of this equipment were registered by RIL for clearance as Project Imports under Customs Tariff heading 98.01. The clearance of the goods imported was on provisional assessment basis under Section 18 CA' 62 pending final reconciliation of the Project etc. (a) On or around 24th March, 1998 RIL were served the subject Notice calling upon them to show cause why: