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Application for waiver of pre-deposit of duty and penalty under Project Imports Regulations, 1986. Analysis: The judgment by the Appellate Tribunal CESTAT, CHENNAI dealt with the application for waiver of pre-deposit of duty and penalty amounting to Rs. 26,78,241/- and Rs. 5,25,000/- respectively. The denial of the benefit of project import to a single machine, "Extruder ZSK 58 MEGA Compounder with standard accessories," imported for substantial expansion of an industrial plant was the central issue. The denial was based on the interpretation of para 3 (a) regulation (ii) of the Project Imports Regulations, 1986 (PIR). Upon analysis, the Tribunal found that there was no explicit provision in Para 3 of the PIR that disallowed the project import benefit to a single machine. It was noted that an industrial plant could consist of one or more units, and the imported machinery was intended for substantial expansion of the existing unit of the industrial plant, regardless of whether it was a single machine or a composite machine. Additionally, the Tribunal considered a recommendation letter from the Department of Chemicals & Petrochemicals supporting the extension of the benefit under the PIR to the imported machinery. Consequently, the Tribunal concluded that a prima facie case had been established for unconditional waiver of the pre-deposit of duty and penalty. Hence, the Tribunal granted the waiver and stayed the recovery of the amounts during the pendency of the appeal. The order was pronounced and dictated in the open court by the Vice-President, Ms. Jyoti Balasundaram.
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