Commissioner of Customs Vs Hyundai Motor India Limited (CESTAT Chennai)
CESTAT Chennai held that notifications and circulars issued under the Customs Act, 1962 cannot take away the benefit which is otherwise available under the Foreign Trade Policy [FTP] and Handbook of Procedure [HBP].
Facts- The Respondent, who is stated to be engaged in the manufacture of motor vehicles, in the course of its business, has imported various capital goods under the Export Promotion Capital Goods (EPCG) Scheme during the period 07.02.2007 to 28.05.2013. Capital goods imported under EPCG Scheme are exempted under various notifications.
In the course of an investigation conducted by the Directorate of Revenue Intelligence, Chennai, the premises of the Respondent’s Vendor Development, Purchase and Traffic and Customs Department were searched and statement were recorded from the Respondent’s personnel. It appears that the Respondent had imported capital goods by availing benefit of concessional rate of duty under EPCG Scheme. The benefits were available subject to fulfilment of certain conditions (pre-import and post-import) as laid down in the respective notifications. It appears that the imported capital goods have been diverted to the vendor’s premises that are not authorised for installation in the condition list attached to the EPCG authorisation on the strength of which the imports were made.
