Component parts for capital goods exemption upheld for stainless steel plates imported for plant assembly.

Stainless steel plates imported as marked components for a fatty acid distillation plant were treated as eligible component parts for exemption under Notification No. 29/97-Cus because the notification covered capital goods imported in SKD/CKD condition and their components required for assembly or manufacture. The Revenue's objection that further working was needed was unsupported by the record; only bending and welding were admitted as necessary. On that basis, the plates were regarded as components of the C-10 column and qualified for the exemption.

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Issues: Whether stainless steel plates imported as marked components for a fatty acid distillation plant were eligible for exemption under Notification No. 29/97-Cus dated 1-4-1997.

Analysis: The imported goods were stainless steel plates of specified size marked as components of the C-10 column of a fatty acid plant, intended to be installed and assembled at the importer's factory. The relevant exemption notification covered capital goods imported in SKD/CKD condition and their components required for assembly or manufacture of the capital goods. The Revenue's objection that the plates required further working was unsupported by material on record, and the admitted position was that only bending and welding were required. On that basis, the goods were treated as component parts eligible for the exemption.

Conclusion: The imported goods were held eligible for the benefit of Notification No. 29/97-Cus dated 1-4-1997, and the Revenue's appeal failed.

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