Project import assessment recognised for cassette duplication unit machinery under Heading 84.66, following binding High Court precedent.

Project import assessment under Heading 84.66 was held available for machinery imported to set up a cassette pre-recording and duplication unit. The Tribunal relied on an earlier Madras High Court ruling recognising project import benefit for equipment used in a film processing laboratory and treated that precedent as governing the dispute. It rejected the departmental objection that the activity was not an industrial plant or industrial activity, noting there was no contrary decision of the Supreme Court or another High Court. The denial of concessional assessment was therefore set aside in favour of the assessee.

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Issues: Whether the appellants were entitled to project import assessment under Heading 84.66 of Section XVI of the Customs Tariff Act, 1975 for machinery imported for setting up a cassette-pre-recording and duplication unit.

Analysis: The Tribunal noted that the same or similar issue had already been considered by the Madras High Court in relation to import of equipment for a film processing laboratory, where the project import facility had been recognised. It also took note that the departmental attempt to distinguish the activity as not involving an industrial plant or industrial activity was analogous to the objections rejected in that decision. In the absence of any contrary decision of the Supreme Court or another High Court, the Tribunal treated the High Court ruling as governing the controversy and found no need to independently re-examine the merits of the departmental objections.

Conclusion: The appellants were entitled to the benefit of project import assessment under Heading 84.66, and the order denying concessional assessment was set aside in favour of the assessee.

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