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TMI Blog1996 (11) TMI 157X X X X Extracts X X X X X X X X Extracts X X X X ..... rities have also held that the Bill of Entry No. DI-512, dated 14-8-1987 and DI-86, dated 4-8-1987 filed by the importer for the clearance of these goods be assessed finally on merit and in view of the terms as directed the importer to pay difference of duty amounting to Rs. 14,15,537.49. 2. The appellants imported Wheel sets for railway wagon, which were required by Godavari Fertilisers Chemicals Ltd. Secundarabad in setting up of their fertilizers plant at Kakinada. Since the big vessels cannot sail to Kakinada port they were diverted to Vishakapatnam, where Godavari Fertilizers Chemicals Ltd., have a storage facility for the phosphoric Acid (hereinafter known as goods). These goods were carried out by railway tanker from Vizag to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... raw materials upto 170 kms. He has further noted that the Chapter 98.01 covers only those machineries which are required for initial setting up of the unit or for substantial expansion of an existing unit and that the railway wagons imported by the appellants will only be required after initial setting up of the unit viz. when the fertilizers plant is ready to take up raw materials viz. phosphoric acid, only then it will be transported to the factory for production of fertilizer. The learned Collector has applied the ratio of the Tribunal s judgment rendered in the case of PSEB, which clearly laid down that the transport equipment cannot be considered and that if it is treated as auxiliary equipment other types of transport materials such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r equipment is a part of industrial system covered by Project Import under Chapter Heading No. 98.01 as without this transport conveyor system, which is feeder system to the fertilizer machinery, the fertilizer project cannot function at all. He submitted that transport by pipeline would come within the ambit of Project Import as per Notification No. 110/86-Cus., dated 17-2-1986. The transport module is therefore, analogous to the pipeline system of transport. He submitted that transportation by other modules like Oxygen and acetylene cylinders, have been considered as equipment under Project Import in the Asiatic Oxygen Ltd. s case. Pointing out to Clause 3(c) of the Project Import Regulations, 1986, the learned Advocate submitted that con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the lower authorities is required to be sustained. 7. We have carefully considered the submissions made by both the sides and have perused the citations relied by the appellants. The learned DR relied on the judgment of Hon ble Supreme Court in the case of Jacsons Thevara (supra) and on perusal of this citation it is clear that the same is not applicable to the facts of the present case as the ratio of the judgment is that Project Import benefit cannot be extended if the imported machinery for expansion of existing unit is transferred to another unit. The lower authorities have relied on the judgment rendered in the case of PSEB s case, wherein the Tribunal after a detailed examination on the question as to whether vehicles imported f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o considering the arguments of the appellants, we are convinced that the ratio of the PSEB s case is not distinguishable. It is also noticed by us that the Tribunal had referred the matter to the Larger Bench in the case of Toyo Engineering India Ltd. v. Collector of Customs as reported in 1994 (70) E.L.T. 769, wherein the ratio of PSEB s case was upheld. Therefore, the question having been settled by the Larger Bench and it having upheld the ratio of the PSEB s case, therefore, we are required to follow the same. In the case of Toyo Engineering India Ltd. s case also the appellants had imported the erection and other equipments which had been used for setting up a project in Kuwait in accordance with Para 213 of Import Policy, 1985-88 rela ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rther held that the goods imported do not qualify for assessment under Heading 98.01 because the essential requirement of registration of a contract for classification under that heading had not been fulfilled in this case. Ultimately the Tribunal concluded that the goods imported do not qualify for assessment as auxiliary equipment and the benefit of concessional duty under Heading 98.01 cannot be extended to the importer. 8. We notice that the question raised by the learned Advocate in the present case and also by the appellants before the lower authorities for interpreting the term auxiliary equipment has been finally settled by this Larger Bench s judgment. In the case of PSEB case, the Tribunal also examined the dictionary meanin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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