CESTAT dismissed the appeal involving denial of customs...

CESTAT dismissed the appeal involving denial of customs exemption under N/N. 84/97-Cus for imported Asphalt Batch Mix Plant from China. The appellant claimed exemption for project-funded machinery but officials admitted goods were not intended for permanent project use, resulting in project certificate cancellation. The tribunal held that conditional exemptions create continuing obligations, and fraud vitiates exemption claims. Despite valid project certificate at import, subsequent cancellation due to non-compliance with notification conditions constituted suppression of facts and fraudulent duty evasion. The tribunal upheld duty demand with interest under Section 28AA, invoked extended limitation period under Section 28(4) due to fraud, and imposed penalty finding blameworthy conduct and mens rea established through appellant's admissions.