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Issues:
Eligibility for exemption under Entry 226 of Notification 11/97 for a diesel generating set imported by the appellant. Analysis: 1. The main issue in this appeal is the eligibility of the imported diesel generating set for exemption under Entry 226 of Notification 11/97. The appellant claims the goods are classifiable under Heading 98.01 of the tariff, and the exemption under Entry 226 includes goods required for various projects, including fertiliser projects and captive power plants of 5 MW or more. 2. The question at hand is whether the goods should be exempted under Entry (i) as goods required for a fertiliser project or under Entry (iii) as a captive power plant of 5MW or more. The Commissioner concluded that the generator would be part of a power plant for the NPK plant, which is a fertiliser project, and thus, the goods must be considered for the captive power plant. 3. The appellant's counsel argues that the exemptions under different serial numbers of Entry 226 are separate, and the appellant can choose the one that benefits the most. Referring to a previous judgment, the counsel asserts that the appellant is entitled to the exemption under serial 1 over serial 3. Additionally, the counsel emphasizes a liberal construction of statutes for economic growth and development, citing a Supreme Court judgment. 4. The Departmental Representative supports the Commissioner's order, emphasizing the reasoning provided therein. 5. The Commissioner relied on a letter from the Ministry of Finance, stating that captive power plants imported along with a fertiliser plant should be liable to duty as a captive power plant, not as a fertiliser plant. The Commissioner considered himself bound by this letter, as per a Supreme Court judgment. 6. The Tribunal notes that while the letter is not binding, the deliberate distinction in duty rates for captive power plants and fertiliser plants indicates separate interpretations for the two entries. The Commissioner found that the power plant and fertiliser plant are distinct entities, supported by project reports and permissions obtained for the power plant. 7. The Commissioner's conclusion that the power plant is separate from the fertiliser plant is upheld, as the power plant's functioning is not essential for the NPK plant's operation. The power plant's identity remains distinct, and its use can be altered in the future. 8. The Tribunal finds the Commissioner's conclusion reasonable and unchallenged, as the entries in the notification indicate specific benefits for different types of projects based on the classification of goods. 9. Considering the above analysis, the Tribunal dismisses the appeal, upholding the Commissioner's order regarding the eligibility for exemption under Entry 226 of Notification 11/97 for the imported diesel generating set.
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