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Issues Involved:
1. Licence coverage relating to ITC. 2. Availability of Notification No. 155/86-Cus. for air conditioning as an integral and essential part of the SCP machine. Detailed Analysis: Issue 1: Licence Coverage Relating to ITC The learned Collector ruled in favor of the appellant regarding the aspect of licence coverage. The Collector concluded, "I therefore order that the 4 REP licences produced the instant case be accepted and clubbed together for the subject consignment." Issue 2: Availability of Notification No. 155/86-Cus. for Air Conditioning as an Integral and Essential Part of the SCP Machine The learned Collector denied the benefit of Notification No. 155/86-Cus. to the appellant, reasoning that the air-conditioning equipment was not of any special design or construction to cater to any special and uniquely critical requirement. The Collector noted that the air conditioning equipment was of general type and had no special characteristics except for its high tonnage capacity. The Collector also referred to the DGTD certificate dated 11-4-1991, which described the equipment as an "Industrial Air Conditioner" and an assembled unit out of various parts manufactured by different manufacturers. The appellant argued that the learned Collector's reasoning was contrary to the factual position and the language and requirement of Notification No. 155/86-Cus. The notification required the importer to prove "to the satisfaction of the Assistant Collector of Customs to be so required for such setting up, assembly or manufacture..." and to furnish a certificate from an authorized authority. The appellant had fulfilled both conditions, providing a certificate from the Director General of Technical Development recommending duty-free import under Notification No. 155/86. The appellant further detailed the specific technical requirements and specifications of the air conditioner for the SCP machine, highlighting its unique design to safeguard hydraulic, electric, and electronic components from high ambient temperatures, contaminated atmosphere, and other harsh conditions in the coke oven area. The air conditioner was designed to maintain positive pressure, employ special filters, and handle high air velocity, among other specialized features. The learned DR argued that the air-conditioning equipment was of a general type and not specifically designed for the SCP machine. The DR cited the judgment of the Hon'ble High Court of Calcutta in the case of Khetawal Chemicals and Fertilizers Ltd. v. Collector of Customs, which supported the contention that machinery essential for operation may not necessarily be an integral part of another machinery or system. The Tribunal considered the submissions, the cassette demonstrating the SCP machine's function, and the certificate issued by the suppliers. Despite the DR's objections to the post-importation certificate, the Tribunal found no evidence to contradict the factual accuracy of the certificate, which described the air conditioner as specifically designed for the SCP machine. Conclusion: The Tribunal concluded that the air-conditioning equipment was not merely essential but required to be considered an integral part of the SCP machine. Consequently, the appeal was allowed.
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