9911796707
TMI Blog2006 (8) TMI 184X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessee-respondent was classifiable under Heading 98.01 of the First Schedule to the Customs Tariff Act, 1975 (for short "the Tariff Act") and granted the benefit of Project Import under the Project Import Regulation to the assessee. 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, er ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the setting up of the unit or its substantial expansion. As the respondent could utilise the machinery elsewhere in the setting up of other plants, the impugned goods could not be classified under Heading 98.01 of the Tariff Act. 5. The 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ansmission equipment, auxiliary equipments besides components and raw materials required for the initial setting up of a unit or the substantial expansion of an existing unit of specified industrial plant. The industrial plant would include fertilizer plant as well, as it is designed to be employed directly in the performance of processes necessary for manufacture of fertiliser. Since the fertiliser plant is covered by the industrial plant 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; supplemen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tly for other project would not debar the respondent from availing the facility of project import. If the contention of the Revenue is accepted, then resultant effect as put by the Tribunal would be : "...no equipment can be imported for projects like Konkan Railway Project, Road Development Projects of the National Highway Authority of India, etc. specified under Heading 98.01 of CTA." We agree with this observation of the 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.) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods imported by the respondent such as hydle truck cranes, excavator, shovel loader, truck, forklift truck, power generators, diesel welder, welding rectifier, containers tools and tackles instruments, level Nako with tripod and theodlite nako with accessories and tripod would certainly be auxiliary equipments which would help in the initial setting up of the industrial plant. The facility of the project import was denied 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 n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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