Case Law Details
Apca Power Private Limited Vs C.C.-Kandla (CESTAT Ahmedabad)
CESTAT Ahmedabad held that department cannot self assign to itself the duty of declaring bad in law the certificate issued to the importer by Ministry of Renewable Energy or decide title of the goods, even when no one is disputing ownership.
Facts- The appellant filed a bill of entry and claimed exemption vide Notification No. 01/20-Cus dated 06.01.2011 applicable to all items of machinery and apparatus required for setting up a solar power generation project when imported into India. The relevant certificate claim exemption from the Ministry of New and Renewable Energy was duly produced to claim such exemption. Department, however, made investigations against them on the ground that a certificate was obtained and an exemption claimed. Even when they were not owners of the goods, and the High Sea Sale Agreement was shown just for the sake of exemption.
Department was of the view that the High Seas Sale Agreement was not genuine, and it undertook an investigation by recording various statements to show that the exemption had been wrongfully claimed. Whereas the underlying EPC contract provided that it was the duty of M/s PESL to procure all the equipment and to pay customs duty.
Conclusion- It is thus abundantly clear that department cannot self assign to itself the duty of declaring bad in law the certificate issued to the importer by Ministry of Renewable Energy or decide title of the goods, even when no one is disputing ownership.
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