Case Law Details
Tata Steel Ltd. Vs Commr. of Customs (Port) (CESTAT Kolkata)
CESTAT Kolkata held that the imported assemblies, sub-assemblies, components, sub-components under EPCG are held as allowed as spares under the Foreign Trade Policy at Para 9.57.
Facts-
The appellants Tata Steel Ltd. are engaged in manufacture of iron and steel having its largest production facility in Jamshedpur, wherein the Appellant had commissioned seven blast furnaces having aggregate capacity of 5 million MPTA. Subsequently, the Appellant sought to enhance the capacity of its blast furnace upto 10 million MPTA and thus conceived the plan to install “H” blast furnace and “I” blast furnace of 2.5 million capacity each. For the purpose of setting and commissioning the aforementioned blast furnaces, the Appellant invited tenders from prospective bidders.
The SCN was issued alleging that the Appellant had entered into sham agreements with a view to split the consideration for supply of imported equipments under FOB Agreement into designs & drawings and other post importation activities so as to evade customs duty. Accordingly, Show Cause Notice sought to add the consideration paid to agreement holders under the above four Agreements, to the assessable value of equipments/goods imported under FOB Agreement by re-assessing 77 Bills of Entry under FOB Agreement, for import of goods by PWIT.
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