Arijit Pasayat, J. - (1.) These appeals by the Revenue are directed against the common judgment passed by the Customs Excise and Gold (Control) Appellate Tribunal, West Regional Bench, Mumbai (in short the CEGAT). By the impugned judgment the CEGAT set aside the imposition of duty, redemption fine, interest and penalty levied under the Customs Act, 1967 (in short the Act) levied/imposed on respondent No. 1 M/s Essar Oil Limited (hereinafter referred to as the assesses), its officers (Respondents Nos. 2 to 4) and officials of the Customs Department (Respondent Nos. 5 to 7).
(2.) Backgrounds facts as projected by the appellant are as follows: Sometime during 1997 respondent No. 1 imported plants and machineries worth Rupees 600 crores for its refinery project. These imported goods were stored in private bonded warehouses, one of which is closed. The licences for the warehouses were valid upto 24.11.1999. General bond of Rs. 120 crores was executed by respondent No. 1 under Section 59(2) of the Act to secure payment of customs duty. Between 18 and 23.2.1999 respondent No. 1 submitted 84 ex-bonds bills of entry which were assessed to customs duty at the prevalent rate and corresponding TR-6 Challans for payment of duty were handed over to the assessee.
(3.) On 24.2.1999 assessee-respondent No. 1 wrote to ICICI Ltd. stating that there was possibility of imposition of duty on refinery goods and requested them to immediately release funds to avoid project cost over-run. On the same day inter office memo was issued by Shri. S.R. Aggarwal (respondent No. 2) to Shri P.R. Ashok (respondent No. 3) stating that ICICI Ltd. had indicated their desire to disburse a sum of Rs. 100 crores so that the Countervailing Duty (in short CVD) amount to be paid before pronouncement of the Union Budget, 1999. The memo pointed out that the necessary documentation was in process and remittance of the funds by telegraphic transfer to the State Bank of India (SB) Jamnagar would be done immediately thereafter. Respondent No. 3 was requested to complete the paperwork with customs authorities.;