BHARAT HEAVY ELECTRICALS LTD Vs. COLLECTOR OF CUSTOMS

JUDGEMENT

(1.) COLLECTOR of Customs, Madras by Order -in -Original No. 291 /93, dated 24 -3 -1993 confirmed a duty demand of Rs. 3,62,28,9037 - against the appellants subject to adjustment of Rs. 1,08,38,8647 - already paid at the stage of clearance after provisional assessment of six numbers of Wind Operated Turbine Generators (WOEG) imported by them. Appellants are seeking the setting aside of the said order and a direction for re -assessment of the parts of the generator under Notification No. 89/91 -Cus., dated 25 -7 -1991 and refund of the amount already paid.

(2.) WE have heard detailed submissions made on behalf of the appellants by Shri V. Sridharan, ld. Advocate and by Shri S. Ramanthan, ld. JDR representing the Respondent Commissioner.

(3.) BRIEFLY , the facts relevant for consideration of the issues raised are : The Maharashtra Energy Development Authority (MEDA) placed an order with the appellants for the supply, erection and commissioning of six Wind Operated Electric Generators (WOEG) of 250 MW each under a project funded/sanctioned by the Department of Non -conventional Energy Sources of the Govt. of India. Pursuant thereto, according to appellants, they imported a consignment of parts of WOEG of 250 KW capacity. For this purpose, they obtained the necessary certificate from the Ministry of Non -conventional Energy Sources under Notification 89/91 and sought exemption from Customs Duty under the said Notification which was not agreed to by the Customs authorities. After conducting detailed investigations including recording of statements, of officers of the appellants, a Show Cause Notice was issued dated 23 -9 -1992 alleging, that, the appellants had in, fact imported six will WOEG miscleclaring the as wind generator 'components' and 'maintenance spares'. It was alleged that the goods imported were in assembled condition and not in the form of components as claimed in the Bill of Entry and Invoice, and therefore, the consignments were, not eligible for the concessions under. Customs Notification 89/91. Pending, adjudication appellants were allowed .clearance after provisionally assessing the parts and the generator at the rate of 40 per cent under Notification 90/91, dated 25 -7 -1991.