JAWAHARLAL NEHRU PORT TRUST Vs. COMMR. OF CUS.

JUDGEMENT

(1.) THE appeals are directed against Order -in -Original CAO No. 67/2012/CAC/CC(I)/AB/CC, dated 29 -10 -2012 passed by the Commissioner of Customs (Import), New Custom House, Mumbai. Vide the impugned order a Customs duty demand of Rs. 48,30,77,904/ - has been confirmed against Jawaharlal Nehru Port Trust, Mumbai (JNPT) by denying the benefit of 'Project Imports'. Further, the goods imported by claiming the said benefit has been confiscated under Section lll(o) of the Customs Act, 1962 and a redemption fine of Rs. 50 lakhs has been imposed. A penalty of Rs. 5 crore has also been imposed on M/s. Samsung Company Ltd. under Section 112(a) and another penalty of Rs. 5 crore has been imposed on M/s. JNPT under Section 112(a) and 112(b) of the Customs Act, 1962. Aggrieved of the same, the appellant is before us.

(2.) THE facts relating to the case are as follows:

(3.) THE learned Special Consultant appearing for the Revenue, on the other hand, contends that as per the public notice issued by the Commissioner of Customs, Mumbai vide Bombay Custom House Public Notice No. 2/88, dated 14 -3 -1988, for registration of contracts under Project Import Regulations, recommendatory letter for duty concession from the concerned sponsoring authority as provided for in Para 288 of the ITC Handbook was required. The appellant did not produce such a recommendation. In the correspondence exchanged between the department and M/s. Samsung Co. Ltd. and M/s. JNPT, M/s. Samsung Co. Ltd. vide letter dated 7 -10 -1988 had informed the department that they would be producing the said certificate through JNPT from the concerned Ministry at the earliest and also that the benefit of concession would be passed on to M/s. JNPT. In the said letter, they had further confirmed that customs duty would be paid directly by M/s. JNPT on all the equipment and spares imported under the contract. This position was reiterated by M/s. JNPT vide letter dated 15 -10 -1988 sent to M/s. Samsung Co. Ltd. Further, vide letter dated 20 -12 -1988, M/s. Samsung Co. Ltd. informed the Customs authorities that they would be submitting the recommendatory letter from the Ministry of Surface Transport for availing the benefit of concessional rate for projects import within a month's time through JNPT. There is a corroboration to this effect in letter dated 23 -12 -1988 issued by M/s. JNPT addressed to the Customs authorities, it was in these circumstances, the project was allowed to be provisionally registered and the concessional rate of customs duty under project import was extended.