Case Law Details
RKM Powergen Pvt Ltd Vs Commissioner of Customs (CESTAT Chennai)
Introduction: In the case of RKM Powergen Pvt. Ltd. vs. Commissioner of Customs (CESTAT Chennai), a significant dispute arose regarding the eligibility of project import benefits for goods imported before the contract registration. This article delves into the details of this case, highlighting the key arguments and the final decision.
Detailed Analysis:
1. Background and Timeline: RKM Powergen Pvt. Ltd. applied for project registration under Project Import Regulations 1986 on August 23, 2010. They also submitted a sponsorship letter to the Customs authorities. Subsequently, on September 16, 2010, they filed a bill of entry in Chennai Customs House for goods related to the contract. The Customs department assessed these goods under a merit rate of duty.
2. Disputed Duty Payment: The appellant argued that they should be entitled to the concessional rate of duty because their import fell under the project scheme. They contended that their application for project registration was made well before the goods’ clearance, but the concession was denied as the contract had not been registered at the time of import.
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