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Issues Involved:
1. Application of registration of contract for the supply of equipment for the port facility at Visakhapatnam. 2. Whether the equipment for initial setting up of the port facility system can be regarded as auxiliary equipment required for the initial setting up of a unit of an industrial plant within the meaning of Item (i)(D) of Heading 84.66 of the Customs Tariff Act, 1975. Summary: Issue 1: Application of registration of contract for the supply of equipment for the port facility at Visakhapatnam The common appellant, a Government of India Undertaking, was granted an industrial license to set up an Alumina/Aluminium Complex. The dispute in these appeals relates to the application of registration of the contract for the supply of equipment for the port facility at Visakhapatnam. The Assistant Collector rejected the applications, holding that "Visakhapatnam Port facilities Alumina Conveying System" does not fall under any of the serial numbers of 84.66, and cannot be considered a project for an industrial plant. The Collector (Appeals) dismissed the appeals, rejecting the contention that the port facility is an extended arm of the industrial plant (refinery) and holding that the equipment sought to be imported cannot be considered as required for an industrial plant. Issue 2: Whether the equipment for initial setting up of the port facility system can be regarded as auxiliary equipment required for the initial setting up of a unit of an industrial plant within the meaning of Item (i)(D) of Heading 84.66 of the Customs Tariff Act, 1975 The relevant portion of Chapter Heading 84.66 of the Central Excise Tariff 1975 was considered. The Tribunal noted that the equipment imported for the purpose of setting up the port facility system has no direct bearing on the mining operations or any other part of the larger project which can be regarded as "an industrial plant". The question for consideration was whether the equipment for the initial setting up of the port facility system can be regarded as auxiliary equipment required for the initial setting up of a unit of an industrial plant within the meaning of Item (i)(D) of Heading 84.66 of the Tariff. The Tribunal referred to the Supreme Court's decision in Punjab State Electricity Board, which held that vehicles used in shifting transformers would not constitute an integral part of the power project and would not attract the provision of entry 84.66. The Tribunal emphasized that auxiliary equipment must mean subsidiary equipment required for the initial setting up of a unit of an industrial plant. The Tribunal held that the geographical distance between the port facility and the site of the refinery is not a criterion. The criterion is the role played by the equipment in the initial setting up or substantial expansion of an existing unit of an industrial plant. The Tribunal concluded that the equipment necessary for port facility conveying system does not fall under Tariff Heading 84.66 and, therefore, the appellant would not be entitled to seek import of those goods under this Tariff Item. Conclusion: The Tribunal dismissed the appeals, holding that the equipment necessary for the port facility conveying system does not fall under Tariff Heading 84.66, and the appellant is not entitled to seek import of those goods under this Tariff Item.
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