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Issues:
1. Interpretation of Tariff Item 98.01 and Notification No. 85/93 for concessional assessment. 2. Requirement of certification under Regulation 5 for concessional assessment. 3. Definition of "substantial expansion" and "unit" under Project Import Regulations (PIR), 1986. 4. Necessity to establish the imported goods' relation to a specific project for concessional assessment. Analysis: The appellate tribunal was presented with an appeal challenging a lower authority's decision granting concessional assessment benefits to line equipment imported for electricity transmission under Tariff Heading 98.01 read with Notification No. 85/93. The lower authority considered the equipment part of a power project due to its essential role in electricity transmission and reliance on a certificate from the Central Electricity Authority. However, the tribunal noted a contradiction in the lower authority's order regarding the scope of "power projects" under the notification. The tribunal emphasized the necessity for imported goods to be linked to a certified project for concessional assessment under Regulation 5. The tribunal queried the certification of the transmission equipment as part of a specific project eligible for concessional assessment, which was not adequately demonstrated by the respondents during the proceedings. The lack of information on project certification led the tribunal to question the validity of the concessional assessment granted. Analyzing Tariff Item 98.01 and PIR, 1986, the tribunal highlighted the criteria for substantial expansion, requiring a 25% increase in installed capacity, and defined a "unit" as a self-contained portion of an industrial plant or project. The tribunal stressed the importance of establishing the imported goods' direct relation to a certified project involving substantial expansion to qualify for concessional assessment. As this crucial aspect was not addressed in the lower authority's decision, the tribunal deemed the order improper. Consequently, the tribunal set aside the lower authority's decision and remanded the matter for fresh adjudication, emphasizing the need to consider the legal aspects and factual evidence regarding the project's scope and substantial expansion. The tribunal directed the lower authority to provide the respondents with a hearing opportunity and allowed the revenue to present submissions on the legal issues and project import scope during the reevaluation process.
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