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of <h1>Tribunal Grants Customs Duty Exemption for Power Project Imports, Recognizing Valid Essentiality Certificate.</h1> <h3>M/s. ONGC Tripura Power Company Ltd. Versus Commr. of Customs (Port), Kolkata</h3> M/s. ONGC Tripura Power Company Ltd. Versus Commr. of Customs (Port), Kolkata - TMI Issues involved: The issue involved in this case is whether the goods imported by the Appellant for a Power Project were eligible for full exemption from Customs Duty under Notification No. 12/2012-Cus dated 17/03/2012, as amended.Summary of Judgment:Issue 1: Eligibility for exemption under Notification No. 12/2012-Cus:The Appellant imported goods for a Power Project under Project Import basis with full exemption from Customs Duty under Notification No. 12/2012-Cus. The Adjudicating Authority held that the goods were not directly related to the project as the Essentiality Certificate was issued by the Deputy Secretary instead of the Secretary, Government of Tripura. The Authority confirmed a demand of Rs.19,14,41,111/- on the provisionally assessed Bills of Entry. The Commissioner (Appeals) upheld the decision. The Appellant contended that they obtained a valid Essentiality Certificate signed by the Secretary, Government of Tripura before the Order-In-Original was passed, ratifying the earlier Certificate. They argued that all imported goods were essential for the project. The Tribunal found that the goods were indeed imported for the Power Project, fulfilling the conditions of the Notification. The Tribunal set aside the lower Authorities' decision and allowed the Appeal with consequential relief.Key Points:- The Appellant imported goods under Project Import basis with full exemption under Notification No. 12/2012-Cus.- The Adjudicating Authority held the goods were not directly related to the project due to an issue with the Essentiality Certificate.- The Commissioner (Appeals) upheld the decision of the Adjudicating Authority.- The Appellant obtained a valid Essentiality Certificate signed by the Secretary, Government of Tripura before the Order-In-Original was passed.- The Tribunal found that the goods were essential for the Power Project and fulfilled the conditions of the Notification.- The Tribunal allowed the Appeal and set aside the lower Authorities' decision.Case law reference:- The case law of Commr. of Customs (Imports), Mumbai Vs. Tullow India Operations Ltd.-2005 (10) TMI 502 (SC) was cited to support the argument that subsequent production of a Certificate can fulfill the conditions for exemption.Legal Principles:- The Tribunal emphasized the importance of the Essentiality Certificate as proof of fulfilling conditions for exemption under the Notification.- The Tribunal highlighted that goods required for setting up a Mega Power Project were eligible for exemption under the Notification.Final Decision:The Tribunal found that the Appellant had fulfilled the conditions specified under Notification No. 12/2012-Cus dated 17/03/2012 and allowed the Appeal with consequential relief.
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