TaxTMI 
TaxTMI 
2015 (9) TMI 1195
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....ld Development Project. M/s Jindal, a sub-contractor of the Appellant had imported namely C.S. Seamless Line Pipes from M/s Missui Ltd Japan and filed Warehouse Bills of Entry. M/s Jindal carried out certain processes such as Coating etc on this imported pipes in the warehouse and thereafter, filed ex-bond Bills of Entry and Coastal shipping bills. The goods were removed from Mundra to Mumbai High and claimed exemption from payment of Customs duty under Sr.No.215 read with condition No.30 attached to the Table of Notification No.21/2002-Cus, dt.01.03.2002 for use at ONGC MANHARD-II Oil Exploration Project. After completion of the use of the said pipes at ONGC MANHARD-II Oil Exploration Project, the surplus 410 Coated Pipes were received back by the Appellant. On 09.11.2011, the Central Excise officer, Belapur and Central Intelligence Unit, J.N. Customs House, Nhava Sheva (CIA, JNCH), searched the storage yard of M/s Logistics Enterprises Pvt.Ltd at Taloja, Navi Mumbai, hired by the Appellant and found that the said pipes belonging to the Appellant removed from Mumbai Port to the said place without permission from the Customs and the goods were seized under Panchnama dt.09.11.2011. ....
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.... of Petroleum & Natural Gas, Government of India, to the effect that the goods are required for the purpose of off-shore oil exploration/exploitation. Further, the imported materials are used in the manufacture of goods in accordance with provisions of Section 65 of the Customs Act (i.e. manufacture under warehousing procedure). It has to be satisfied (i) whether the import are in connection with the purpose of off-shore oil exploration / exploitation, (ii) the imported goods are to be used in the manufacture of goods in accordance with the provisions of Section 65 of Customs Act, 1962 (i.e. manufactured under warehousing procedure) and (iii) a certificate is to be produced from a duly authorised officer of Directorate General of Hydro Carbon that the goods are required for the purpose of off-shore exploration/exploitation. In the present case, the Adjudicating authority observed that the surplus quantity of 410 imported pipes had not been used at ONGC MANHARD-II Project and the Appellant had attempted to divert the said imported goods for home consumption without payment of appropriate Customs duty. 5. The learned Advocate on behalf of the Appellant submitted that the Appellant....
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.... of M/s ONGC Project. It is certified that the certificate was issued with reference to the Notification No.21/2002-Cus, as amended (Sr.No.215) of the Table. It is also certified that the said certificate was issued subject to fulfillment of Condition No.30 of the notification. The expressions goods are required for the purpose of off-shore oil exploration/exploitation in Clause (b) in Condition No.30 of the said notification, make it clear that at the time of clearance of the goods from the Customs Warehouse, it would be certified that the goods will be cleared for the purpose of off-shore oil exploration. In the present case, there is no dispute that coated pipes were cleared for the purpose of oil exploration. After the use of pipes at Mumbai Project, there was surplus quantity of 410 pipes were returned. It is noticed that the imported pipes were processed by coating etc at the warehouse by M/s Jindal as per the provisions of Section 65 of the Act, 1962. Therefore, in our considered view, the Appellant fulfilled the condition 30 as stipulated in the notification. 9. The Adjudicating authority, observed that the Appellant diverted the goods unathorisedly. We find that the 410....
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.... over, cannot be said that there was violation of the conditions of the notification. 12. In the present case, the Appellant cleared concrete coated carbon steel pipes by filing various Ex-Bond Bills of Entry for installation, inspection and testing of North Node and Monel on pipelines and fabrications of bends for MANHARD-II Project of ONGC. The imported goods were used for the project and thereafter, surplus pipes which were originally intended for use in the project found to be excess and therefore, the Appellant rightly claimed the benefit of notification. The Adjudicating authority observed that the said decision is not applicable as the serial number and the conditions mentioned in the above decision are different from serial number and conditions mentioned, under which the Appellant claimed the benefit of the notification. We find that the conditions mentioned in both serial numbers of the notification are identical. In the said case, the goods were required for petroleum operations, whereas, in the present case, the goods are required for offshore oil exploration and exploitation. 13. In the case of Clough Engineering Ltd (supra), the Tribunal followed the earlier cas....
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.... the said LSI/VLSI etc. In view of absence of any end-use condition in the notification, the benefit cannot be denied. It cannot also be included that the goods are required and sold for the manufacture of items falling under chapter heading 85.42 and it is not necessarily required to go into the final product. A plain reading of the notification indicates that it is enough if it is required for the manufacture of goods falling under chapter heading 85.42. The benefit for the testing equipment which are utilized for testing equipment falling under chapter heading 85.42. Therefore the ruling of the Apex Court rendered in the case of Sha Harakchand Dharkaji v. CC, Madras (supra) clearly applies to the facts of the case and is not distinguishable. So also the judgment rendered in the case of Bermalt (India) Pvt. Ltd. v. GOI & Ors., reported in 1986 (23) E.L.T. 411 (Del.) will also apply to the facts and circumstances of the case. It was also brought to our notice that in the present case, the Revenue did not obtain any end-use certificate. Neither there is any condition for production of end-use certificate in the notification. Therefore the key for understanding of this notification ....