Page 90 - ELT_15th May 2020_VOL 372_Part 4th

480 EXCISE LAW TIMES [ Vol. 372
Nos. PUR/PC/MOD/08.01/Pt.II, dated 31-10-1989 and PUR/PC/MOD/08.01/
Pt-I, dated 29th March 1990. These imports were made in connection with mod-
ernisation, expansion and modification for their plant at Durgapur in West Ben-
gal. For this purpose, SAIL had floated seven Global Tender Contract Packages.
The two contracts were part of these Tender Contract Packages. They were regis-
tered with the Customs authorities for the purpose of project import benefits in
terms of the 1962 Act. The first contract involved in this appeal was with a con-
sortium consisting of a German Company, Hoestemberghe & Kluisch, GMBH
and H & K Rolling Mills Engineering Private Limited, an Indian Corporate enti-
ty. The second contract was also with a German Company, Siempelkamp Pressen
Systeme and the Indian entity was Escon Consultants Private Ltd. with whom
the consortium was formed. Both these contracts were in connection with mod-
ernisation of SAIL’s rolling mills at the aforesaid plant.
2. Schedule 3 of the first contract (Bearing No. 544-9/91A SVB) speci-
fied scope of supplies and service along with the price particulars. Extracts from
that Schedule appears from the order of the Commissioner of Customs being the
authority of first instance, dated 3rd January 2001. This order related to the first
contract. We shall refer to this order in greater detail later in this judgment. Rele-
vant part of that Schedule is reproduced below :-

Schedule Description Millions
No. [I][M]
3.5.1A[II] Basic design and Engineering 2.230
3.5.2A Plant & Equipment including commissioning 2.512
Spares
3.5.3A Spares for two years operations and mainte- 0.537
nance, insurance spares, special tools and
tackles.
3.5.4A Foreign Supervision charges during manufac- 0.675
ture of Indian equipment as well as for erec-
tion, commissioning and performance guaran-
tee tests.
(quoted from the order in verbatim).
In addition to this, contract price of Rs. 18,61,44,000/- and a royalty of Rs. 10 per
tonne of thermax bars produced during first five years of operation was also to
be paid to the Indian entity of the consortium under the contract for supplies and
services made by the latter.
So far as the second contract is concerned, the scope of supplies and ser-
vices to be effected by the consortium appears from the following part of the
Third Schedule, which again has been reproduced in the second order (Bearing
No. 544-9/91A SVB) of the authority of first instance, dated 1st June 2001 :-

Schedule Description Millions [I]
No. [M]
3.5.1.1. [ii] basic design and engineering 6.650
3.5.1.1 [v] technical services for Project management like 1.000
planning, procurement, inspection, expedit-
ing, etc.
3.5.1.1 [vi] As built drawings 0.100
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