1,50,11,858/ was leviable on the goods cleared by M s. Virgo Steels and after giving deductions for such amounts already deposited by them, a demand for the balance sum of Rs.72,02,060/ was made on M s. Virgo Steels along with a penalty of Rs.5 lacs.
C 1994/92 B2 of M s. Virgo Steels and Appeal No.
Based on the said investigation, Commissioner of Customs, Mumbai came to the companyclusion that the import made by M s. Virgo Steels after the abandonment of the project by the ACC was in companytravention of the provisions of the Customs Act, 1962 the Act , hence, decided to initiate proceedings against M s. Virgo Steels and ACC.
The offer was accepted by the ACC and the said Virgo Steels obtained an advance licence under the Deemed Export Scheme for duty free import of the companycerned steel under Notification No.210/82.
Along with the said letter they also enclosed a cheque for a sum of Rs.50 lacs though post dated as a token of their companymitment made in the said letter.
It is on record that M s. Virgo Steels asked ACC to issue a signed export certificate in regard to actual quantities of steel supplied by it for the purpose of duty exemption, but the ACC pleaded their inability to provide such Deemed Export Certificate in view of the fact that it had abandoned its project.
filed by the ACC, the abovenoted four appeals have been preferred before this Court, out of which Revenue has filed two appeals out of which C.A.No.3711 of 2000 is against the order of the Tribunal allowing the appeals filed by M s. Virgo Steels, in part, and C.A. No.3712 of 2000 is against the order of the Tribunal, allowing the appeal of ACC in its entirety, while M s. Virgo Steels being aggrieved by that part of the order which has gone against has preferred A.Nos.48 49 of 2001.
In spite of the same M s. Virgo Steels imported certain quantities of steel duty free knowing very well that the expansion project by the ACC had been abandoned.
In the above factual background and on the basis of certain information received by the Marine Preventive Wing of Mumbai, Customs investigations were companyducted in regard to the import and illegal sale of steel by M s. Virgo Steels.
This numberification specifically required that if the goods in question was number used for the purpose for which importation was permitted then the importer was liable on demand to pay a sum equivalent to the duty leviable.
In regard to ACC, the Collector imposed a penalty of Rs.5 lacs for having abetted the illegal import of the said sale.
With C.A.Nos.48 49 of 2001 J U D G M E N T SANTOSH HEGDE, J. M s. Associated Cement Company Ltd. for short ACC had embarked upon a project of substantial expansion and modernisation of its cement factory at Shahabad in Karnataka.
It is against this order of the Tribunal made in appeal No.
In response to the said tender, M s. Virgo Steels made an offer to supply 5,187 MT of steel.
C/151/94.Bom.
M s. Virgo Steels and ACC preferred their respective appeals before the Customs, Excise Gold Control Appellate Tribunal for short the Tribunal .
Sometime in November, 1988, the ACC decided to abandon the work of expansion, hence, the licence obtained under the above said scheme for importation of duty free steel became invalid.
They also admitted that the said material was sold in the market companytrary to the terms of said Import Scheme and assured the former that they were ready to pay the duty chargeable under the said import as also any other penalty that may be imposed on them.
Based on the said letter, the Collector of Customs vide his order dated 16.3.1993 held that duty amounting to Rs.
In that tender, ACC had claimed that the project was aided by the International Bank for Reconstruction and Development for short the IBRD , which would give the importer exemption from the import duty.
The ACC had floated a tender inviting supply of high standard deformed steel bars.
