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TMI Blog2008 (3) TMI 183X X X X Extracts X X X X X X X X Extracts X X X X ..... , Consultant, for the Appellant. Ms. Sudha Koka, SDR, for the Respondent. [Order per : T.K. Jayaraman, Member (T)]. - This appeal has been filed against the Order-in-Appeal No. 384/2007 dated 16-5-2007, passed by the Commissioner of Customs (Appeals), Cochin. 2. The appellants had registered 4 Project contracts for implementation of 4 small hydro projects. The projects were registered in accordance with the Project Regulation and the items were imported under Bill of Entry dated 14-11-2002 for a total value of USD 37,25,587. The goods were cleared on project rate of duty @5% + 16%. The appellants later imported certain spares and consumables. During the finalization of the Project, it was seen that all the goods covered by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en a finding that the spares imported were for maintenance and they cannot be given the benefit of the concessional assessment. The learned Consultant pointed out that the import of project contract is covered by CTH 98.01 which itself specifies that spare parts and other raw materials not exceeding 10% of the value of the goods specified can be imported, provided that such spare parts, raw materials or consumable stores are essential for the maintenance of the project. In this case, the appellant relied on the decision of the Tribunal in the case of C.C., Bangalore v. Chamundeshwari Studio Lab. (P) Ltd., reported in 1998 (100) E.L.T. 264 (T) wherein, in Para 9, it was held that spares imported for maintenance within l0% of the value ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d later. Further the learned Consultant pointed out that when the, imported project was not completed and even the trial was not completed. In such a circumstance, it is not understood why the Revenue is holding the view that these imports are not covered by the contract especially when the contract stipulates certain trial operation to be carried out by the seller. Article 10 of the contract specified that the seller should remedy all the defects at their down cost. They have also not appreciated the point that the spares imported are within 10% of the value of the project. Further lower authority has given a finding that the spares imported for maintenance are not entitled for the concessional assessment. This is also incorrect as he has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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