9911796707
TMI Blog2001 (11) TMI 190X X X X Extracts X X X X X X X X Extracts X X X X ..... : "Goods required for - (i) fertiliser projects; (ii) coal mining projects; (iii) captive power plant of 5 MW or more; (iv) power generation projects including gas turbine power projects (excluding captive power plants set up by projects engaged in activities other than in power generation); (v) power transmission projects of 66 KV and above; (vi) other industrial plant or projects." 2. The question to be considered is, whether the goods are entitled to exemption under Entry (i) at nil rate of duty, as goods required for a fertiliser project, or under Entry (iii) at 20% basic duty and 13% additional duty of Customs as captive power plant of 5MW or more. In the impugned order, the Commissioner held tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rather than that which is none of these things. 4. The Departmental Representative emphasises what the Commissioner says in his order. 5. The Commissioner has noted the contents of a letter 528/67/97-Cus., dated 18-11-1999 of the Ministry of Finance to the Secretary, Department of Fertiliser. This letter refers to a clarification issued to the Department of Fertiliser by the ministry on "captive power plant imported along with a fertiliser plant will be liable to duty as applicable to captive power plant and not the duty as applicable to fertiliser plant. The Commissioner has, and in our view, rightly held himself bound by the contents of this letter in the light of the Supreme Court's judgment in Ranade Micronutrients v. CCE [1996 (87) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r plant are two different entities even though they may be used in conjunction with which appears to us to be sound. The power plant no doubt has been imported in order to provide power to the new NPK plant. However, the NPK plant would not be said to be incomplete without the power plant. It could be run by electricity from say general grid of the electricity board or purchase from elsewhere. Its functioning is not dependent on the power plant. Similarly both power plants may have been imported in order to provide power, to the fertiliser plant, its identity is not merged in that of the fertiliser plant. It could, at any point in future be decided that the power from this plant will be used not to run NPK plant, but to some other plant of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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