TaxTMI 
TaxTMI 
2005 (10) TMI 173
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....f under the provisions of Section 111(o) with an option to redeem on payment of a fine of Rs. 15 lakhs under section 125, confiscated the trailor trucks with fine of Rs. 1 lakh confirmed a demand of duty of Customs of Rs. 24,67,536/- on the above goods, against the appellant who had imported 459.20 mtrs. of Seamless C.S. Pipes for execution of Laxmi Field Phase I project for petroleum/gas exploration on behalf of M/s. Cairns Energy Pvt. Ltd., Surat by availing benefit of exemption in terms of Notification No. 21/2002-Cus., dated 1-3-2002 on the basis of essentiality certificate issued by the Director General of Hydro Carbon, New Delhi as per condition 31 of the Notification and sold goods in dispute as scrap after project confiscation and i....
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....certificate from a duly authorized officer of the Directorate General of Hydro Carbon in the Ministry of Petroleum and Natural Gas Government of India that the imported goods are required for petroleum operations referred to in clause (a) i.e. in connection with Petroleum operations to be undertaken under a contract with the Government, of India. 5. The entire dispute in this case revolves around the interpretation of the expression "required for petroleum operations". The stand of the Department is that since the seized goods were in excess of the quantity of pipes actually used in the Laxmi Field Project Phase I by the importers who had entered into a contract dated 29-6-2001 with M/s. Cairns Energy Pvt. Ltd. for execution of the above....
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....at the cement was required for use in the generation or distribution of electrical energy, was used by the Board for activities not directly connected with activities not directly connected therewith, cannot make any difference regarding the availability of the exemption. The above decision has been followed by the Tribunal in NOCIL v. Commissioner of Customs (Import), Mumbai reported in [2000 (126) E.L.T. 1072] in interpreting Notification No. 158/76 which exempts raw naphtha intended for use in the manufacture of petrochemicals and extending the benefit there under to the quantity of raw naphtha which had evaporated and hence not consumed in the manufacture of petrochemicals. 7. In the case of Commissioner of Central Excise Chennai v. ....
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....er meanings than to give a simple meaning of its utility in the manufacture of goods falling under chapter heading 85.42. The importation of the term "used in the manufacture of goods" is not proper and to hold that it is required to go into the goods to be manufactured by the assessee himself or by the person who are using it. So long as it is shown by the expert opinion, as has been shown in the present case, that it is required for use for testing of LSI/VLSI circuit micro assemblies and printed circuit board, the benefit has to be extended. In the present case, M/s. Electronic Corporation of India Ltd., a Govt. of India Enterprise has certified that the item is for testing of the said LSI/VLSI etc. In view of absence of any end-use cond....
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...., falling under heading No. 85.42 of the said First Schedule. The certificate produced from M/s. Electronic Corporation of India Ltd. clearly indicates that the item is required for manufacture of goods in question which falls under chapter heading 85.42. In that view of the matter, the Commissioner's order granting benefit on the simple reading of the notification is justified and correct and there is no infirmity in the same. There is no merit in this appeal and it is rejected. 8. The above view recorded by ld. Member (Judicial), who disagreed with the order recorded by ld. Member (Technical) that the benefit of the notification was not available to the respondents, has been concurred with by third member, and by majority order, the ap....