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TMI Blog2006 (8) TMI 184X X X X Extracts X X X X X X X X Extracts X X X X ..... would apply to goods which are imported in accordance with the Project Imports Regulations, 1986; (3) that under Regulation 4 the assessment under Heading 98.01 shall be available only to those goods which are imported against one or more specific contract which have been registered with the appropriate Customs House. In the absence of a specific contract being registered Heading 98.01 would not be applicable to the impugned goods imported by the respondent; and (4) that the benefit of concessional duty under Project Import was not available if the goods had arrived before the application was submitted for registration of the goods. All these submissions were not allowed to be raised by the tribunal as these submissions had been made for t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Facts : 2. Assessee-respondent (for short "the respondent") is engaged in the setting up of industrial unit such as fertilizer plant. M/s. Indian Farmers Fertilisers Cooperative Ltd. entered into a contract with their parent Company M/s. Toyo Engineering Corporation, Japan for designing, engineering, fabricating and commissioning an Ammonia Storage Package Unit and a Co-generation Plant. Their Parent Company in turn entered into an agreement with the respondent to carry out all the works, services, erection and commissioning of the project on turn key basis. The respondent filed an application on 17-3-1986 with the Contract Registration Cell for grant of the benefit under the Project Import Scheme read with Notification No. 72/85-Cus., d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respondent being aggrieved filed an appeal before the Tribunal which has been accepted by the impugned order. The Tribunal held that the grounds on which both the lower authorities have denied the facility of project import to the respondent were not sustainable in law. After detailed discussion the Tribunal set aside each of the findings recorded by the appellate authority and held that the respondent would be eligible to the benefit asked for. 6. Heading 98.01 of the Tariff Act reads as under : "98.01 All items of machinery including prime movers, instruments, apparatus and appliances, control gear and transmission equipment, auxiliary equipment (including those required for research and development purposes, testing and quality cont ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lant specified in Heading 98.01 of the Tariff Act all the "auxiliary equipments" which are required for the initial setting up of the unit could be imported under the Project Import Scheme. 8. As per Words and Phrases of Excise and Customs by S.B. Sarkar "auxiliary" means : "giving additional help; supplemental or subsidiary; an item not directly a part of a specific component or system but required for its functional operation." 9. According to Black's Law Dictionary, sixth edition, 'auxiliary' means : "Aiding; attendant on." 10. According to the World Book Dictionary, 'auxiliary' means : "a person or thing that helps; aid; syn; accessory". 11. Webster's Encyclopedic Unabridged Dictionary of the English Language, (1996 Edn.) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tribunal. 13. Counsel appearing for the appellant strenuously contended that the respondent could not be given the benefit of the project import under Heading 98.01 of the Tariff Act in view of the decision of this Court in the Punjab State Electricity Board v. Collector of Customs, Bombay, 1997 (91) E.L.T. 247 (S.C.). 14. We do not find any substance in this submission. In that case this Court did not consider the vehicles imported to be an item of auxiliary equipment required for setting up of an initial unit on the ground that it was used only in shifting of the transformers which would not constitute an integral part of the power project. The vehicles imported were required for transportation of the transformers from railway yards ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to the respondent because the ownership of the imported goods did not pass to the project authority. Since it is not disputed that the construction equipments imported by the respondent were used in the initial setting up of the plant, then, as per the provisions of Heading 98.01 of the Tariff Act the respondent could not be denied the benefit of the project import. 15. Before the Tribunal learned departmental representative appearing for the Revenue had made various other submissions such as (1) that absence of a contract specifically registered for import of construction material; (2) that note (2) to Chapter 98 according to which Heading 98.01 would apply to goods which are imported in accordance with the Project Imports Regulations ..... X X X X Extracts X X X X X X X X Extracts X X X X
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