2025-VIL-1104-CESTAT-CHE-CU
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CUSTOMS CESTAT Cases

Customs – Section 114A of Customs Act, 1962 – Import of machinery – Denial of benefit of exemption - Appellant imported Asphalt Batch Mix Plant from China for home consumption – Appellant cleared imported goods without payment of customs duty, under Notification No.84/97-Cus – Investigation initiated by officers of DGCEI revealed that machinery was intended to be withdrawn from project, which was violation of condition of aforesaid Notification – After due process of law, Adjudicating Authority denied benefit of exemption under Notification No.84/97-Cus and confirmed demand of duty and also imposed equal penalty under Section 114A of the Act on Appellant – Whether Appellant is entitled to benefit of exemption under Notification No.84/97-Cus – HELD – The Notification No. 84/97-Cus exempts all goods imported into India for execution of projects financed by United Nations or an International Organisation and approved by Government of India. Phrase “goods brought into project are not withdrawn by supplier or contractor” found in Explanation 2 inserted in Notification has to be understood as not being withdrawn when the project is in operation – Appellant has admitted that impugned goods were not supplied to project and was not intended to be brought into project on a permanent basis and accordingly, project certificate also came to be cancelled by Project Authority. Due to admission of officers of Appellant company and resultant cancellation of project certificate by Project Authority, benefit of exemption under notification has to be denied – Appellant by suppressing and mis-representing facts have sought an unfair tax advantage – Once Appellant is not eligible for exemption under notification, duty not paid needs to be paid with interest – Impugned order is sustained and appeal is dismissed
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