Case Law Details
Hydraulic Study Dept Vs Commr. of Customs (Port) (CESTAT Kolkata)
CESTAT Kolkata held that the Hydraulic Study Department of Calcutta Port Trust were eligible for the benefit of Notification No. 71/80-Cus dated 26.03.1981 and Notification No. 152/94-Cus dated 13.07.1994. Notification exempts goods which are imported by research institution from payment of customs duty.
Facts- Kolkata Port Trust through its Research wing Hydraulic Study Department (HSD), that undertakes research work in various aspects of hydraulic behavior of Bhagirathi-Hooghly River system, and has been recognized as a Scientific Research and Development unit by the Ministry of Surface Transport, Government of India, imported certain goods said to be for purpose of carrying out its objective. The importer sought to avail duty concessions in terms of Notification No. 70/81-Cus dated March 26, 1981 and 152/94-Cus dated July 13, 1994, which exempts from payment of custom duty such goods as are imported by a research institution, subject to the research institution furnishing a certificate issued by the specified officer of the administrative ministry concerned, not below the rank of an Under-Secretary.
The Commissioner of Customs (Port) issued a show cause notice, inter alia alleging that the certificate were obtained fraudulently by submitting false and wrong declaration and as the appellant had imported the said goods and scientific instruments for the purpose of using the same in commercial activity, the said concession was not available. In response the appellants stated that Calcutta Port Trust, being a statutory authority could not charge for the usage of VTMS imported, a facility not recognized by the Maritime Rules and that the scale of rates were statutorily fixed.
Vide an order dated December 29, 2000, the Commissioner of Custom (Port) confirmed the demand of duty of Rs. 7,07,77,168/- and imposed a penalty of Rs. 7,07,77,168/-,denying the benefit of exemption notifications.
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