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TMI Blog2017 (9) TMI 1338X X X X Extracts X X X X X X X X Extracts X X X X ..... rd accessories" vide Bill of Entry dt. 07.10.2004 from Germany. The goods had been imported for implementation of substantial expansion project for manufacture of 6000 MTs p.a reinforced/filled thermo plastic compound. The goods were assessed provisionally extending concessional duty under CTH 9801 read with Notification No.21/2002-Sl.No.441 as amended. During finalization of the contract, it appeared to lower authority that impugned goods should be classified under CTH 8477 and since same being a single machine, the notification benefit cannot be extended as per para-3 of PIR, 1986. Accordingly, original authority denied benefit under CTH 9801 read with PIR 1986 for the goods valued at Rs. 2,25,73,297/-, ordered final assessment under CTH ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent function, and accordingly, it qualifies as an unit . The appellant already had three extruding lines in this extruding unit and the imported machinery installed additionally in the said unit of the appellant factory, has doubled the capacity of the existing unit of the extruding process. (iv) As per the definition of industrial plant single/composite machine is excluded. In other words, a single/composite machine would not make an industrial plant. But there is no such exclusion contained in the definition of unit which has defined as a self-contained portion of an industrial plant with independent function . As such, a single/composite machine can form a unit of the industrial plant if it is a self-contained portion of the industrial ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fit of exemption for project import, they would ordinarily be classifiable under CTH 9801. The lower authorities have denied benefit of project import concession to these goods on the grounds that they comprised single or composite machine. 4.3 The Project Import Regulation, 1986 is a facilitator mechanism for import of goods under one or more specific contracts for the entire project. Regulation 3(a) (ii) excludes import of a single or a composite machine, within the meaning assigned to it, in Notes 3 and 4 to Section XVI of the First Schedule to the Customs Tariff Act. The relevant CTH 9801 covers all items of machinery as well as components (whether finished or not) or raw materials for the project contract, or raw material for the man ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... had indeed been imported for implementation of the project as registered under Custom House. There is also sufficient facts brought out to hold that imported machine is a single machine. 4.6 Thus it is seen that the provisions of the PIR 1986 themselves do not bar the import of machine in question. 4.7 What is then to be seen is whether import of single machine is foul of Chapter 98 of the Schedule to the Customs Tariff Act. From the chapter notes therein clearly specify that the chapter is to be taken to apply to all goods which satisfy the conditions prescribed therein even though they should be covered by a more specific heading elsewhere in the schedule. Chapter Note 2 lays down that Heading 9801 is to be taken to apply to all goods w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rue, the definition is to identify whether industrial plant project per se falls within scope and purpose of CTH 9801 and the PIR 1986. Certainly, that is not the dispute here. On the other hand, there is no allegation that the project per se cannot be industrial plant project because there will be installation of only one machine or a composite machine. On the other hand, that bridge has verily be crossed as evidenced by lower appellate authority conceding in page 3 of the impugned order that the goods had been imported for implementation of substantial expansion project . Thus what is relevant is whether the goods imported are for a project having only a single machine or a composite machine. Such an allegation is not forthcoming from the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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