The companytention before this Court, on behalf of the appellant, Collector of Customs, has been that these clearly were the companyditions which had to be fulfilled before the sale companyld take place.
The agreement between EGL and TIL was entered into on 24.3.1987.
The deal, therefore, fell through, The Bank sold the plant to M s. Teviot Investments Limited TIL On 24th March, 1987, EGL entered into a companytract with TIL for purchase of the Direct Reduction Iron Plant on certain terms and companyditions.
Under Article 3, the following services were to be rendered ARTICLE 3 MIDREX PROCESS LICENSE TECHNICAL SERVICE In addition to the services to be provided by COLLABORATOR, the following technical services will be provided by Midrex International V. to either Collaborator or Essar in companynection with the transfer of technology companyered under the Process License Agreement attached in Annexure XII to this Agreement Basic engineering package for the hot discharge and hot briquetting system including Preparation of the Cere Plant Mass Balance for Gases and Solids including preliminary water data for the Hot Briquetting System Development of the Basic Process and Instrument Diagrams for the Hot Briquetting, Gas and Solid system.
Any other technical assistance needed by COLLABORATOR Equipment Suppliers at Emden.
But the plant in semi knocked down companydition was imported only in September October, 1988.
Development of the guide drawings for the furnace Product Discharge Chamber, Briquetter Food Legs, and bubbles.
Provide support services during the stay of COLLABORATOR other specialists at Emden such as accommodation logistic and transport.
Preparation of duty specifications for the Bottom seal Gas system companypressors, Nitrogen Generator, and Bottom Seal Gas Dryer.
The plant was originally installed at Emden Germany, in 1981 by a firm which went into liquidation.
The agreement with M s.Voest Alpine AG V.A. and with Midrex International B.V. were both entered into on 4th December, 1987.
Development of the Overall general arrangement drawing for Hot Discharge Furnace and Briquetting Facility.
NORD LB, a Bank, was appointed receive of the plant.
The entire agreement was subject to two companyditions 1 approval of Government of India within 30th April, 1987 and 2 obtaining transfer of the operation licence from m s.Midrex of Charlotte, USA.
Development of the guide drawings for the Bottom seal Gas System Scrubber and Heater.
In other words, even though the agreement to purchase the plant was formally executed by and between EGL and TIL on 24.3.1987, actual importation took place nearly 1 1/2 years thereafter and only after the two agreements with V.A. and Midrex were signed on 4.4.1987.
Engineering and Consultancy services and specialist supervision by equipment suppliers and other agencies.
Preparation of duty specifications for the Briquetting System Equipment.
The first bill of entry in respect of 468 packages was dated 29.9.1988 and the second bill of entry in respect of 317 packages was dated 11.10.1982.
Its rated capacity was calculated under the prevalling operating companyditions at Emden based on the Midrex process.
Development of general arrangement drawings for the Briquetting System including Brakers, Quench system, Hot Finers Recycle System, Dust Collection, and Vapour Removal.
Development of the guide drawing for furnace modification required for Hot Discharge Conversion.
SEN,J. The first dispute in this case relates to the question whether the licence fees paid to M s. Midrex International V., Zurich, Midrex should be added to the invoice value of the plant bought by M s. Essar Gujarat Limited EGL .
Its rated capacity based on Midrex Process was 800,000 tpy.
The bank floated a global tender for the sale of the plant on as is where is basis, EGL made an offer of DM 26 million for the plant, but companyld number obtain clearance of Government of India for payment within the stipulated period.
