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2015 (10) TMI 1527 - AT - CustomsBenefit of Status Holders Incentive Scrip scheme - Appellants imported goods under Status Holders Incentive Scrip scheme and claimed benefit of Notification No.104/09 Adjudicating authority and commissioner denied benefit of notification as goods were not covered under SHIS scheme as goods are not related to chemical industry and is only for generation of electricity Held that - evident that SHIS Scrip is issued to manufacturer of specific sector for import of capital goods for upgradation of technology It is also evident that import of capital goods under SHIS scrip, under Notification 104/09 is for purpose of upgradation of technology and also it is sector specific What is imported by appellants are accessories of Steam Turbine Generator used in generation of steam which in turn used for generating electricity whereas SHIS is applicable only for import of capital goods for Basic Chemical Industry Import of accessories for Steam Turbine Generator cannot be considered as upgradation of technology of capital goods of chemical industry Therefore, appellants are not eligible for benefit of SHIS scrip under Notf no 104/09 Impugned order upheld Decided against Appellant.
Issues:
- Eligibility of benefit under Status Holders Incentive Scrip (SHIS) scheme for imported accessories of a Steam Turbine Generator Set. Analysis: The case involved an appeal against an order passed by the Commissioner (Appeals) denying the benefit of Notification No.104/09 to the appellants who had imported accessories for a 10 MW Steam Turbine Generator Set under the SHIS scheme. The adjudicating authority and the Commissioner (Appeals) had rejected the claim, leading to the present appeal. The main contention was whether the imported accessories qualified as capital goods under the SHIS scheme. The appellant argued that the accessories were essential for the generation of electricity, making them eligible under the wide and inclusive definition of capital goods. On the other hand, the respondent contended that the imported goods did not relate to the chemical industry, which was a prerequisite for availing benefits under the SHIS scheme. The respondent emphasized that the scheme aimed to promote investment in technology upgradation in specific sectors, including the chemical industry, and the imported accessories were not directly related to this objective. Upon considering the arguments from both sides, the Tribunal focused on the key issue of whether the appellants were eligible for the SHIS scheme benefits for the imported accessories. The Tribunal examined the relevant provisions of the notification, particularly para 3.16, which outlined the sectors eligible for the SHIS scheme. It was noted that the SHIS scrip was issued for the import of capital goods for technology upgradation in specified sectors, including the Basic Chemical Industry. The Tribunal observed that the imported accessories for the Steam Turbine Generator did not fall within the scope of the specified sectors eligible for the SHIS scheme. The Tribunal emphasized that the SHIS scheme was intended for the upgradation of technology in the chemical industry, and importing accessories for a Steam Turbine Generator did not align with this objective. Therefore, the Tribunal concluded that the appellants were not entitled to the benefit of the SHIS scheme under Notification No.104/09 for the imported accessories, upholding the impugned order and rejecting the appeal. In summary, the judgment delved into the interpretation of the SHIS scheme provisions and the specific eligibility criteria for availing benefits under the scheme. The decision hinged on whether the imported accessories for a Steam Turbine Generator qualified as capital goods for technology upgradation in the specified sectors, particularly the Basic Chemical Industry. The Tribunal's analysis centered on the alignment of the imported goods with the objectives of the SHIS scheme, ultimately determining that the appellants did not meet the criteria for claiming the benefit under the scheme.
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