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TMI Blog2000 (10) TMI 64X X X X Extracts X X X X X X X X Extracts X X X X ..... of Project Import under the Project Import Regulation, has referred the following questions to the Larger Bench : (i) Can the benefit of the Notification be denied to the appellants on their admission of imported goods after being fully utilised for the specified fertiliser project, is then taken for use, if they are still available for other project? (ii) Whether the expression 'specified' in the Tariff item 84.66 of CTA includes named project in a particular place or in several places? 2. Shri L.P. Asthana, learned Advocate, mentioned that the Appellants are engaged in the setting up of industrial units such as fertiliser plant; that M/s. Indian Farmers Fertilisers Cooperative Ltd. entered into a contract with their parent Co. M/s. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding 98.01, items of machinery or component parts should go into the initial setting up of the unit and should not merely be used as an aid for such setting up of the unit or its substantial expansion, and as the appellants could utilise the machinery elsewhere in the setting up of another plant, the imugned goods could not be classified under Heading 98.01 of C.T.A. The learned Advocate also mentioned that the Bench had referred the matter to the Larger Bench in view of the decision in the case of Punjab State Electricity Board v. C.C., Bombay, 1987 (27) E.L.T. 432 (T); that a Larger Bench of the Appellate Tribunal disallowed the benefit of Project Import vide Final Order No. C/64/93-B2 which has been set aside by the Supreme Court by Orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... als or consumables stores are essential for the maintenance of the plant or project mentioned in 1 to 6 above." 4. The learned Advocate has submitted that fertiliser plant is covered by Industrial Plant mentioned at Srl. No. 1 in Heading No. 98.01; that the construction machinery imported by them is covered by auxiliary equipment mentioned in the heading and were required for the initial setting up of the unit; that Heading 98.01 is applicable to all items of machinery required for the specified project for the purpose of initial setting up or for the substantial expansion of such project; that auxiliary equipments cannot become part and parcel of the plant; that any equipment which becomes part and parcel of the plant will not be te ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was not considered to be an item of auxiliary equipment required for the initial setting up of a unit in a specified power project on the ground that it was used only in shifting transformers which would not constitute an integral part of the power project. We would also like to emphasise certain features of that case. Firstly, transformers had nothing to do with the generation of power but have nexus with the transmission of power. Secondly, vehicle was intended to transport specified number of transformers to site of sub-station and the utility of the vehicle would be over at the end of such transport and thereafter the vehicle would certainly be used for other purposes of the assessee. The transformer which was required to be shifted had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich is directly used in the setting up of the project would be an auxiliary equipment. The Tribunal, in that case, did not treat the vehicle as an auxiliary equipment as it was to be used for transport of the transformer to the project site and restricted the term to those equipments which have direct use in the setting up of the project. The Larger Bench of the Tribunal in National Aluminium Co's case have interpreted the Supreme Court's decision in P.S.E.B. case and explained as to why the vehicles were not held to be integral part of the power project. We also observe that it is not the case of the department that the construction equipments imported by the appellants were not used in the initial setting up of the plant. The Assistant Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for import of construction material; 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, 1986. The learned D.R. also referred to Regulation 4, according to which 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 and submitted that in the absence of a specific contract being registered Heading 98.01 will not be applicable to the impugned goods imported by the Appellants. He also relied upon the decisions in the case of Dunlop India Ltd. v. C.C., 1997 (95) E.L.T. 162 (S.C.), Mihir Textiles v. C.C., 1997 (92 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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