2005 (8) TMI 475 - AT - Customs

Summary

Issues:
1. Eligibility of imported stainless steel plates under EPGC Notification No. 29/97-Cus for exemption.
2. Requirement of further working on imported plates to qualify as component parts.

Analysis:

Issue 1: Eligibility of imported stainless steel plates under EPGC Notification No. 29/97-Cus for exemption
The case involves the appeal by the Revenue regarding the import and clearance of stainless steel plates by the Respondents. These plates were intended to be used as components in a Fatty Acid Distillation Plant. The lower appellate authority allowed the coverage of the imports under EPGC Notification No. 29/97-Cus, which exempts capital goods in SKD/CKD condition that are to be assembled into capital goods required for manufacturing. The Tribunal found that the stainless steel plates, marked as components of the Fatty Acid Plant, were eligible for the exemption as they were essential for the assembly or manufacture of the capital goods. The Tribunal concluded that the plates, meeting the specified size and requirements, were rightfully considered eligible for the exemption under the said notification.

Issue 2: Requirement of further working on imported plates to qualify as component parts
The Revenue contended that the imported plates needed further working to become component parts and thus were not eligible for the exemption. However, the Tribunal noted that there was no evidence presented to support this claim. The Respondents acknowledged that only bending and welding were necessary, with no additional extensive working required on the plates. In light of this, the Tribunal found no fault in granting the benefit of the EPGC Notification to the imported stainless steel plates. Consequently, the Tribunal rejected the Revenue's appeal, affirming the eligibility of the subject goods for the exemption.

In conclusion, the Tribunal upheld the decision to grant exemption to the imported stainless steel plates under EPGC Notification No. 29/97-Cus, emphasizing their essential role as components of the Fatty Acid Distillation Plant. The Tribunal dismissed the Revenue's appeal, highlighting the lack of evidence supporting the claim that further working was needed on the plates to qualify as component parts.