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of <h1>Customs department's 6-7 year delay in project import reconciliation deemed unreasonable, security deposit release ordered</h1> <h3>M/s. Nortech Power Projects Private Limited Versus Commissioner of Customs (Port), Kolkata</h3> M/s. Nortech Power Projects Private Limited Versus Commissioner of Customs (Port), Kolkata - TMI Issues involved: Appeal against Order-in-Original denying project imports benefits under Customs Act, levy of duty, confiscation of goods, redemption option, relocation of project site, show cause notice for diversion of import goods, refund of Security Deposit.Summary:1. The appellants appealed against the Order-in-Original denying project imports benefits and imposing duty under Customs Act. The projects were relocated due to unforeseen circumstances, with necessary approvals from the government. The appellant had no role in the decision-making process. 2. The appellant imported goods for two projects, which were relocated to a new site due to flash floods. Correspondence and approvals from government officials confirmed the relocation of the project. The appellant had no responsibility in the decision-making process.3. The department issued a Show Cause Notice despite repeated requests for reconciliation and finalization of the project import. The notice alleged diversion of import goods to an unapproved site, which was disputed by the appellant. The issuance of the notice was deemed misplaced and the denial of project import benefits was considered an error of judgment.4. The appellant sought refund of the Security Deposit post-completion of the project, submitting all required documents to the department. The department delayed the refund process for several years, claiming file loss initially. The delay in refunding the legitimate amount due to the appellant was noted.5. The Tribunal set aside the impugned order, directing the department to complete the reconciliation process within two months. The relocation of imported goods to a new site would not affect the grant of project import benefits if admissible. The department was instructed to release the Security Deposit due to the appellants post-reconciliation process.Conclusion: The appeal was allowed, and the impugned order was set aside, emphasizing the importance of completing the reconciliation process and refunding the Security Deposit promptly.
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