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TMI Blog2007 (4) TMI 485X X X X Extracts X X X X X X X X Extracts X X X X ..... nto with M/s. L T Ltd., Mumbai and applied for registration of the aforesaid high sea sales agreement as contract under Project Import Regulations, 1986. They claimed assessment under Chapter Heading 98.01 relating to project import and claimed benefit of exemption under Sr. No. 401 of Notification No. 21/2002-Cus. which provides for nil rate of duty in respect of goods required for setting up of a Nuclear Power Project specified in List No. 43 having capacity of 440 MW and more as certified by an officer not below the rank of Joint Secretary to the Government of India in the Department of Atomic Energy. The imports were subjected to condition No. 87 which further provides that - (a) in case of imports by the constituent units of the Dep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elf on eligibility of goods on Project Import benefit. DG sets required for setting up of Captive Power Plant in the premises of Nuclear Power Plants are having separate identity, and for this reason they cannot be considered as integral parts of Nuclear Power Plant. He also relied upon the clarification given by the Board in the case of M/s. GSFC and M/s. Zauri Agro Chemicals where exemption to DG Sets as part of Fertilizers Projects was disallowed. It was held that DG Sets were imported to supply power to some selected equipments, in case of power failure and for this reason the same cannot be called integral part of the Nuclear Power Plant. 2. The learned Consultant, Shri Z.B. Nagarkar for the appellants submits that requirement of ins ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... supply. It was therefore submitted that DG Sets were essential for the initial setting of plant without which project will not be allowed to be operational. 4. As regards the lower authorities reference, to clarification issued by the Ministry of Finance in the case of M/s. GSFC and M/s. Zuari Agro Chemicals, it was submitted that the issue was different as in the M/s. GSFC case, assessee was claiming concessional rate of duty for DG Sets to be used in the captive power plant and it was opined by the Ministry of Finance that their power plant cannot be considered as captive power plant as it was a dependent upon supply of steam from other units. As regards Tribunal s decision in the case of M/s. Zuari Agro Chemicals Ltd. v. CC, Goa - 200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this case in support of his claim. 6. We have considered the submissions. We find that in a matter like setting up of Nuclear Power Plant where uninterrupted power supply is to be ensured so as to prevent any release of radio active material to the environment, it has be to be considered that captive power plant is a part of project without which the project cannot be cleared and made operational as per Government of India, Board of Atomic Energy Guidelines. As rightly submitted by the learned Consultant for the appellants that Board s clarification in the case of M/s. GSFC plant was on different footing, where the assessee themselves claimed it to be part of the captive power plant and not as part of the project and this was denied. Simi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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