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Issues:
1. Classification of establishment as an industrial unit under Tariff Item 84.66. 2. Eligibility for concessional rate of import duty for machinery imported for expansion. 3. Determination of manufacturing activity and industrial plant status of the establishment. Analysis: 1. The appellants, a photographic establishment, imported machinery for substantial expansion, claiming eligibility under Tariff Item 84.66. The dispute arose when Customs authorities contended that the establishment did not qualify as an industrial unit under the said tariff entry. The appellants argued that their activities, including colour film processing and printing, constituted manufacturing, supported by certifications from Government bodies. The Tribunal analyzed the definition of "industry" and "industrial plant" to conclude that the appellants' establishment did not engage in manufacturing standard products, thus not meeting the criteria for an industrial unit under Tariff Item 84.66. The Tribunal dismissed the appeal, emphasizing the lack of manufacturing activity and government project approval as key factors in denying the concessional duty rate. 2. The appellants sought a concessional rate of import duty for the machinery imported for expansion, based on recommendations from Government bodies and their registration as a small scale industrial unit. However, the Tribunal ruled that the mere registration for benefits did not establish the establishment as an industry. The Tribunal highlighted that the machinery was intended for improving the laboratory activity, not for industrial production, leading to the rejection of the concessional duty claim. The Tribunal emphasized that the Customs authorities were responsible for determining duty rates based on the nature of the establishment's activities, which, in this case, did not align with industrial manufacturing. 3. The Tribunal scrutinized the appellants' activities, including the production of colour pictures, rental of additional premises, and employment data, to assess the presence of manufacturing activity. Despite the appellants' contentions and additional evidence, such as balance sheets and installation records, the Tribunal held that the establishment's primary function as a photographic laboratory did not qualify as industrial manufacturing. The Tribunal referenced past rulings and statutory definitions to establish that processing in this context did not equate to manufacturing under Tariff Item 84.66. Ultimately, the Tribunal concluded that the appellants failed to meet the criteria for industrial unit classification, thereby upholding the Customs authorities' decision to deny the concessional duty rate and dismissing the appeal.
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