1995 (11) TMI 187 - AT - Customs

Summary

Issues:
Appeal against rejection of project import registration under Heading 84.66 for imported items related to a Dairy Development Corporation's project.

Detailed Analysis:
The appeal was filed challenging the rejection of project import registration under Heading 84.66 for items imported by a Dairy Development Corporation. The Corporation imported items required for the extraction and preservation of semen from bulls for artificial insemination of cows. The Corporation claimed that the items were auxiliary equipment for setting up a plant under a project with the World Bank. The Corporation argued that the items were essential for their Bull Breeding Farm and Frozen Semen Bank established as part of their Dairy Development Project. However, the Assistant Collector rejected their application for project import registration and assessed the goods based on their merits, which was upheld by the Collector (Appeals), leading to the appeal before the Tribunal.

The Corporation's main contention was that the imported items were necessary for the initial setup of the plant and should be considered auxiliary equipment for the project. They also argued that the items should be deemed to be covered under Heading 84.66. However, the Department contended that the Corporation failed to prove that the goods were meant for a project covered by 84.66 or that the conditions of the heading were satisfied. The Department highlighted discrepancies in the Corporation's application, indicating that the items imported did not qualify as equipment for initial plant setup under the project.

During the proceedings, the Corporation accepted that the importation was for their Bull Breeding Farm and Frozen Semen Bank. They provided details of the project but did not submit a project report. The Corporation had previously imported a Nitrogen Plant under the same program but could not produce the relevant Bill of Entry. The Department argued that the imported items were not connected to the Nitrogen Plant importation and were solely for semen extraction and preservation, not for the activities covered under Heading 84.66.

The Tribunal noted that the Corporation failed to demonstrate that the conditions of Heading 84.66 were met or that their project fell under the heading's scope. The Tribunal emphasized that the Corporation's declarations contradicted their submissions during the hearing. It was established that the imported equipment was specifically for the Frozen Semen Bank, and the Corporation was not manufacturing the straws for semen storage. The Tribunal clarified that the customs assessment must adhere to the Customs Act and Tariff, and project import benefits cannot be extended unless the conditions are met.

Ultimately, the Tribunal found no reason to overturn the lower authorities' decisions and rejected the appeal against the rejection of project import registration under Heading 84.66 for the imported items related to the Dairy Development Corporation's project.