The Tax Publishers2019 TaxPub(EX) 404 2019 (367) E.L.T. 451

 

GMR Infrastructure Ltd. v. Commr. of Cus. (Imports)

 

CUSTOMS ACT, 1962

--Benefit of notification--Import of 'speco hot mix plant 200 TPH 2500 FFW----Notification itself specifies that deployment for construction of roads for five years was a mandatory qualification of eligible importer at the threshold as well as for continual exemption. The procedure following the award in the project required establishment of 'a special purpose vehicle' and it is that 'special purpose vehicle' which takes the bid process to its logical conclusion by entering into an agreement with the awarding agency. Thus, denial of exemption notification was not justified.--Assessee imported 'speco hot mix plant 200 TPH 2500 FFW' and claimed the benefit of exemption Notification No. 21/2002-Cus. Upon assessment of the bill of entry, Revenue rejected the benefit of the notification and, though, vide Order-in-Appeal No. 595 (GR.VA)/2011 (JNCH)/MP-520, Commissioner (Appeals) upheld the ineligibility at the threshold for not having been claimed in the bill of entry, he did also examine the eligibility to the exemption with reference to the documents that were not submitted. Held: The notification itself specifies that deployment for construction of roads for five years was a mandatory qualification of eligible importer at the threshold as well as for continual exemption. Tribunal had segregated dichotomous condition one at the threshold for eligibility to import without payment of duty by the entities listed therein and the other for continuing eligibility based on specified deployment for a specified time. The procedure following the award in the project required establishment of 'a special purpose vehicle' and it is that 'special purpose vehicle' which takes the bid process to its logical conclusion by entering into an agreement with the awarding agency. By following the decision of Supreme Court in case of Gammon India Ltd. v. Commr. of Cus., Mumbai 2011 (269) E.L.T. 289 (SC) : 2011 TaxPub(EX) 945, denial of exemption notification was not justified.

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