2017 (9) TMI 1017

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....nally assessed at a concessional rate of customs duty on execution of bond and security of Rs. 50.00 lacs. These capital goods were meant for setting up a manufacturing plant of coated and uncoated paper in India by the appellant. However, due to adverse economic condition and lower demand of paper, the said plant could not be set up. The goods are still lying in packed condition with the appellant at one of its godown and have not been transferred or disposed of. Provisional assessments for the above imports were finalized vide the Order-in-Original No. S37C(Misc.)-27/2012A(6) dated 20.03.2014 wherein the following has been held against the appellant: a) Differential duty liability of INR 94,23,839/- has been confirmed against the....

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....was availed at the time of import. (ii) The imported goods are not liable for confiscation, since the actual user condition imposed at the time of import was not violated since the goods are still lying with the appellants in his possession. (iii) The goods were freely importable at the point of import and hence, the goods can be transferred to anybody else and there will be no violation of import policy. Accordingly, it was submitted that order for confiscation and imposition of penalty may be set aside. 5. Ld. DR for the department on the other hand justified the impugned order. He submitted that the goods were liable for confiscation for violation of conditions under which concessional rate of duty was availed by the appellan....

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....sional rate of duty was availed. We further note that the provisional assessment which were ordered at the time of import were finalized denying the benefit of concessional rate of duty. Accordingly, differential duty has been demanded and the same has also been paid by the appellant. 7. The dispute in this appeal is with reference to the order for confiscation as well as imposition of penalty and  redemption fine. At the time of import, the second hand capital goods were allowed to be imported without any import license subject to the condition that it shall be used on actual user basis for the project for which the goods were imported. It is to be noted that the second hand capital goods were allowed for import without license con....