KANISHK STEEL INDUSTRIES LTD. Vs. CCE

JUDGEMENT

(1.) The applications for waiver of pre -deposit of duty of Rs. 63,86,822/ -(out of the total duty demand confirmed of Rs. 83,86,822/ -, the applicant company has paid Rs. 20 lakhs on 19.7.1995 as noted in the impugned order) and penalty of Rs. 25 lakhs on the importer together with penalties of Rs. 50,000/ - each on three employees of the company in terms of Section 112(a) of the Customs Act 1962, arise out of the order of the Commissioner of Customs (Imports), Mumbai. The demand arises as a result of Denial of the benefit of project import under the Customs tariff heading 98.01 and assessment of the imported machines with the benefit under notification 154/86 -Cus. dated 1.3.1986.

(2.) We have heard both sides.

(3.) We find that by order reported in 2003 (159) ELT 755 in the case of CC, Mumbai v. NRB Bearing Ltd., the Tribunal held that the project import benefit is specific to unit and location and since the importer had installed the imported goods in their Thane unit instead of Waluj unit shown as the location in the application for registration under the Project Regulation, the benefit of project import was not available. Against this order which is dated 17.4.2003 an application for rectification of mistake was filed in September 2003. (The Tribunal had partly remanded the case to the adjudicating authority). When the notice of hearing before the Commissioner was issued, the importers brought to the notice of the Commissioner the fact that an ROM application had been filed before the Tribunal and was pending. By letter dated 20.2.2004, the Commissioner declined to adjourn the hearing and fixed the hearing on 3.3.2004. The adjudicating authority, after hearing the appellants, passed the order of duty confirmation and imposition of penalty. We note that out of the total duty demand, Rs. 20 lakhs stands paid. Keeping in view the above fact together with the fact that the application for rectification of mistake against the Tribunal's final order repotted in 2003 (159) ELT 755 is pending and that the Commissioner was informed of the pendency of the ROM application, we are of the view that no further pre -deposit of duty or penalties is called for at this stage and hence we waive pre -deposit of duty and penalties and stay recovery thereof pending the appeals. (Dictated in court)