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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 ..... ly to all goods which are imported in accordance with PIR. The Project Import Regulations are beneficial provisions to facilitate persons for setting up substantial expansion of an existing unit. The definition of industrial plant excluding industrial system having a single machine or a composite machine is relevant. True, 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. 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 - what is relevant is whether the goods imported are for a project having only a single ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 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 ₹ 2,25,73,297/-, ordered final assessment under CTH 84772000 with merit rate of duty, and confirmed demand of differential duty of ₹ 26,78,241/- along with interest liability. Aggrieved, appellant filed appeal before Commissioner (Appeals) who vide impugned order dt. 29.01.2009 upheld the order of the original authority and rejected the appeal. Hence this ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (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 plant with independent function. Such machineries can be imported either for initial setting up of a unit or for substantial expansion of an existing unit and there is no bar to it. Accordingly, denial of the benefit of project import in this case is not at all sustainable at all. 3. O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ulation, 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 manufacture of such items required for the initial setting up of a unit, or substantial expansion of an existing unit, of a specified (i) industrial plant (ii) irrigation project (iii) power project (iv) mining project (v) project for the exploration for oil or other mine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar 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 which are imported in accordance with PIR. We find that lower authorities are seeking to disallow benefit of classification under 9801 and attendant benefit under PIR 1986 on the basis of definition of industrial plant given in Regulation 3(a) of PIR. The said d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 records. In any case, the importers as evidenced from the replies during the adjudication proceedings etc. have been crying hoarse that importer had already made an investment of Rs..8.32 crores in plant and machinery before the importation. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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