2012 (8) TMI 214

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..../s. Polyolefins Industries Ltd. (known as NOCIL ) applied for registration of a project contract under purchase order No. IMP/36006 dated 29/04/1992 in respect of goods with the CIF value of DM 15,75,200/- under the Project Import Regulations, 1986. The said purchase order covered machinery worth DM 14,25,200/- (CIF) and drawings and designs worth DM 1,50,000/- (CIF) and the same was registered provisionally. The appellant imported the goods vide Bill of Entry No. 1391 dated 04/06/1993 and declared the goods as: (i) Twin Screw Compounder type ZSK 92/M 385; and (ii) Designs and Drawings. The item at serial No.(i) above was classified under Heading No. 9801.00 while the drawings and designs were classified under 4906.00. The machiner....

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....he refund order towards the cash security. The appellant vide letter dated 25/08/1995 submitted the said challan and requested for refund of the security. The department, however, did not grant the refund, in spite of a reminder by the appellant vide letter dated 14/01/1998. 2.3. On 18/03/1998 the department issued a show cause notice to the appellant alleging that there was a short levy of duty since value of drawings and designs had not been included in the value of machinery and the same was liable to be added to the value of the import under Rule 9(1)(b)(iv) of the Customs Valuation Rules, 1988 and the drawings and designs were liable to be assessed under Heading 8479.89 as machinery. The appellant contested the demand. The case was ....

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....n this case nor Rule 9(1)(e) of the Customs Valuation Rules . In other words, the proposition in the show cause notice has been negatived by the adjudicating authority in the order passed by him. Nevertheless, he has proceeded to assess the value of the drawings and designs (not under Heading 98.01 as Project Imports) on the ground that the sponsoring authority has recommended project import benefits for a value of only DM 14,25,200/- and has proposed to classify the drawings and designs under Heading No. 8479.89 applicable to machinery and has applied a rate of duty of 80% BCD + 10% CVD applicable to machinery. The learned counsel argues that the order has traversed far beyond the show cause notice and has clearly denied the benefit of inc....