2009 (8) TMI 1067

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....vide Order-in-Original No. 07/2008-Cus. (Commr.) dated 30-12-2008, as per the following details :- (i)   Customs duty amounting to Rs. 2,57,51,018/- along with applicable interest under Section 28AB of Customs Act, 1962 (the Act) demanded from Dharti; (ii)   Penalty of Rs. 2,57,51,018/- imposed on Dharti under Section 114A of the Act; (iii)   Penalty of Rs. 10,000/- imposed on Dharti under Section 117 of the Act; (iv)   Penalty of Rs. 10,000/- imposed on Shri B. Krishna Murthy, General Manger of Dharti under Section 117 of the Act; (v)     Penalty of Rs. 10,000/- imposed on Shri A. P. Vitthal, Executive Director of Dharti under Section 117 of the Act; and (vi)&nbs....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... 3. We have heard both sides. The issue involved is correct classification of self floating pipes for fitting to dredging equipment for removal of material dredged. The Commissioner found that a dredger was functional without self floating pipes. They were not integral parts of a dredger. This fact was also apparent from the fact that import of the impugned pipes was paid for separately to M/s. Danyang Pacific Rubber and Plastic Products Co. Ltd., China (DPRC) under a separate Letter of Credit (LC). Payment for the balance cost was made against another LC to M/s Mean Good International Ltd., Singapore (Meangood), the supplier of the consignment. Self floating pipe of 650 mm diameter could not be operated with the dredger under import, th....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....luded articles of vulcanised rubber other than hard rubber. 4. We find that the said Section Note 2 of Section XVII applies to classification of parts or accessories when imported and presented for assessment as such. The same does not apply when such articles are imported as parts of a complete machine. The appellants had explained during the proceedings that depending on the distance from the shore where the dredger operated, floating pipes of 850 mm dia and those of 650 mm dia could be used with the aid of reducers. When the dredger was at a distance from the shore, floating pipes of 650 mm would be used with floating pipes of 850 mm dia attached to the dredger. This submission of the appellants appears correct. Prima facie, these pip....