HINDUSTAN MOTORS LTD. Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) THE application for pre -deposit of duty of Rs. 1,20,06,119 (Rupees one crore twenty lakhs six thousand one hundred nineteen only) arises out of the order of the Commissioner of Customs, Indore, who has confirmed the demand on the ground that what was imported by the applicants during the period in dispute, viz. January 2002 to July 2003, were complete diesel/petrol engines and transmission in CKD condition and all parts/components taken together which have the essential character of the complete and finished IC engine/transmission.

(2.) WE have heard both sides.

(3.) WE find that in the case of similar imports, the Tribunal has already passed an order for the period 1999 to 2000 vide order reported in 2003 (156) ELT 1551 holding that Rule 2(a) of the Interpretative Rules is applicable and that what was imported were complete engines/transmissions. The appeal against this decision has been dismissed by the Hon'ble Supreme Court. Although the learned Counsel for the applicants seeks to distinguish the earlier order on the ground that during the period in dispute in the present case, the items imported did not have the essential characteristics of complete IC engines/transmissions and that there was 40 per cent indigenisation, we find that the adjudicating authority has noted that the only evidence brought on record by the applicants who sought to distinguish the earlier order of the Tribunal were two certificates, one by a chartered engineer and the other by an engineering institute, both certifying that the imported items alone cannot constitute IC engine, and he has examined the records of the case including the purchase orders, invoices issued by the foreign supplier, etc. which would clearly show that the goods imported were sets of petrol/diesel engines and the pattern of import was the same during the previous period which was the subject matter of the decision of the Tribunal mid the present one. Therefore, prima facie there is nothing to persuade us to take a view different from that already expressed by the Tribunal in its earlier order. In these circumstances, no prima facie case for total waiver has been made out by the applicants. In the facts and circumstances of the case, we direct pre -deposit of a sum of Rs. 50,00,000 (Rupees fifty lakhs only) towards duty within a period of eight weeks and on such deposit, pre -deposit of balance duty shall stand waived and recovery thereof stayed pending the appeal. Failure to comply with this direction shall result in vacation of stay and dismissal of appeal without prior notice.