Functional classification of an integrated crushing plant governed exemption eligibility under the customs notification.

Imported crushing equipment was examined for exemption eligibility by its functional character rather than by separating individual components. The plant was found to operate as one integrated unit, with the jaw crusher only preparing feed for the cone crusher and the cone crusher producing the final product. Supporting technical certificates, including one from the Ministry of Surface Transport and another from an IIT professor, were treated as relevant evidence. On that basis, the imported Scorpion 2000 mobile crushing plant was treated as a cone type crushing plant and held eligible for exemption under Notification No. 20/99-Cus.

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Issues: Whether the imported Scorpion 2000 mobile crushing plant was eligible for the benefit of Notification No. 20/99-Cus. as a stone crushing (cone type) plant, notwithstanding the revenue's objection that it was an integrated plant containing both jaw crusher and cone crusher components.

Analysis: The imported equipment was examined in light of the description in the notification and the supporting materials, including the certificate issued by the Ministry of Surface Transport and the technical certificate from the IIT professor. Those materials indicated that the plant functioned as one integrated crushing unit, that the jaw crusher merely prepared feed for the cone crusher, and that the desired product was produced by the cone crusher. On that basis, the opinion of the Ministry of Surface Transport was considered relevant and the plant was treated as a cone type crushing plant for the purpose of the exemption.

Conclusion: The imported plant was held eligible for the exemption under Notification No. 20/99-Cus., and the assessee succeeded on this issue.

Final Conclusion: The appeal failed and the exemption granted to the imported crushing plant was sustained.

Ratio Decidendi: Where the evidence shows that an imported assembly operates as one integrated cone type crushing plant, it may be treated according to its functional character for exemption under the relevant notification.

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