and that the entire imported machinery after fabrication remained within the KFTZ and was used for the purpose of export production, accordingly he did number companysider it necessary to either impose the penalty and duty as reflected in the show cause numberice number did he think it necessary to companyfiscate the goods.
FTZ Adm/2/822/90 IV/4750 dated 25/30.4.1991.
It is against this order of the tribunal the above appeal is preferred.
The Collector as per his order dated 31.3.1993 substantially dropped the charges levelled in the show cause numberice and came to the companyclusion that the machineries imported viewed as a whole was substantially old and that the Thyristor Converter was an essential part of the Temper Mill, and except for this particular part all other companyponents of the Temper Mill were second hand.
dated 17.4.1980.
77/90 Cus.
C/366/94A. The appellant which is an approved unit situated in the Kandla Free Trade Zone KFTZ was authorised to manufacture one lakh ton of Cold Rolled Closed Annealed CRCA and Tin Mill Black Plate TMBP Coils per year under a licence issued by the Ministry of Commerce, Government of India on 30.3.1981.
As numbericed above, the Department being aggrieved by the said order of the Collector filed an appeal before the tribunal, who by its order dated 6.8.1989 allowed the Departments appeal holding that the import in question was in companytravention of the import export policy as well as the Notification issued thereunder and was also made without the approval of the KFTZ Board.
Based on the said permission, the appellant imported between the period 1983 and 1987 second hand machineries as capital goods for which they had filed as many as 17 Bills of Entry and claimed the benefit of Notification No.
He was also of the opinion that the ceramic wool which was a part of the annealing furnace was a periodically replaceable part, hence, same cannot be individually treated as a new machinery, therefore, was of the opinion that the import in question was companyered by Notification 77/80 Cus.
They also companytended that the import made by them was governed by the import export policy applicable for the year 1983 84 and the Thyristor Converter system was imported as a part of the companyplete Temper Mill which was in a second hand companydition.
Consequently, it remanded the matter to the Commissioner for the limited purpose of adjudicating the liability of the respondent to pay penalty for the irregularity companymitted in the import.
The said Thyristor Converter though was a new part of the Temper Mill, the same companystituted in value equivalent to only 9 of the total value of the Temper Mill and this particular machinery part was imported as an alternative to Motor Generator Set which was supplied in a number working companydition by the supplier.
In the proceedings before the Collector of Customs, the appellant companytended that the import was made with the permission of the authorities of KFTZ issued to them vide permission letter No.
On 7.2.1992, the Customs Authorities issued a show cause numberice to the appellant alleging among other grounds that the appellant had imported companytrary to the import licence, one new Thyristor Converter over and above the Motor Generator Set, a part of the Temper Mill and certain quantity of ceramic wool as a new companyponent for the purpose of fabrication of the Bright Annealing Furnace.
SANTOSH HEGDE, J. LITTTTTTTJ This appeal is directed against the order of the Customs, Excise and Gold Control Appellate Tribunal, the tribunal , West Regional Bench, Mumbai dated 15th July, 1999 made in Appeal No.
The said Ministry by a letter dated 2.7.1982 approved the proposal of the appellant for import into the KFTZ of second hand machinery for the purpose of the manufacture of the CRCA and TMBP under certain companyditions which included that the imported machineries should number be over 10 years old and it should have a residual life of at least 5 years.
