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TMI Blog2004 (1) TMI 628X X X X Extracts X X X X X X X X Extracts X X X X ..... ng and handling equipment valued at USD 13,74,000/-. On an application made by them, the said project contract was registered with Customs House, Visakhapatnam under Project Import Regulations, 1986, for setting up of paper plant at Jeypore, Orissa. The parts of such plant which were imported and cleared under the Bills of Entry were taken and installed in the premises of M/s. Sewa Paper Mills Ltd. Subsequently, M/s. Sewa Paper Mills obtained clearance of second hand deinking plant against Bills of Entry Nos. 213, dated 23-10-86 and 046, dated 10-11-86 through Visakhapatnam Customs House. The goods were assessed provisionally under concessional rate of duty. Subsequently M/s. Sewa Paper Mills became sick and was taken over by M/s. Ballarpur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Smt. Radha Arun, learned SDR appeared for the Revenue. None appeared for the Respondents. The learned SDR stated that the notice for hearing of the appeal was served on the Respondents. Nobody appeared on behalf of them nor any cross-objection has been filed. Therefore, the matter is disposed off on merits based on the evidence on the records. 4. The learned SDR pleaded that as part of the project, M/s. Sewa Paper Mills Ltd., Jeypore, Orissa, imported second hand deinking machinery through Visakhapatnam Custom House vide Warehousing Bills of Entry Nos. 0213, dated 23-10-86 and 0046, dated 10-11-86 and the goods were assessed to concessional rate of duty under Project Import Regulations. Instead of installing the deinking machinery in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt case, the simple reason as to why the department denied the benefit of project import is that part of the machinery was diverted for utilisation in some other unit though meant for production of same goods. As per the definition under Project Import Regulations, 1986, an industrial plant is an industrial system designed to be employed directly in the performance of any process or series of processes necessary for manufacture, production or extraction of a commodity . In the context of this definition, it is apparent that what was diverted is not an industrial plant but only an individual machinery which cannot be considered as an industrial plant. Therefore, the submission of the party that the imported goods have been diverted for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and also the purpose for which such concession is extended in terms of Heading 98.01 of Customs Tariff stand violated. The mere fact that Shri Avtar Verma is the promoter of both M/s. Sewa Paper Mills and M/s. Sunshine Pulp Papers Ltd. does not make goods imported by him to be eligible for concessional rate of duty. The goods were eligible for concessional rate of duty as long as they are installed at M/s. Sewa Paper Mills, Jeypore, Orissa. Therefore the order the Commissioner (Appeals) may be set aside. 5. From the records, we find that M/s. Sewa Paper Mills, Jeypore, Orissa registered a Project Contract at Visakhapatnam Customs under Project Import Regulations for setting up of paper plant at Jeypore, Orissa. As part of the Project, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r by M/s. Ballarpur Industries Ltd. which is a different company and M/s. Sunshine Pulp Paper Mills (P) Ltd. is a different company. The goods which were imported by M/s. Sewa Paper Mills were not utilised by them but they diverted these goods to another company. Therefore concessional rate of duty under Project Import Regulations, 1986 is not applicable. The Board s Instructions relied upon by the Commissioner (Appeals) clarify that the Project Contract Scheme has been framed to simplifying the procedure of the assessment. The main criteria is that the goods should be meant for use in a particular project. In the present case, these goods were imported for a particular project for using them in the premises of M/s. Sewa Paper Mills. Sinc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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