Court denies exemption claim for imported steam turbines & parts for new manufacturing unit. Collector's decision upheld.

The court dismissed the petitioner's application, ruling that the exemption under Notification No. 155/86-Cus. for parts required for setting up specified articles under Chapter 84 or 85 did not apply to the imported steam turbines and related parts for setting up a new manufacturing unit. The court held that the exemption was specific to parts necessary for setting up the articles listed in the notification's Table, not for the overall factory setup. Therefore, the petitioner was not entitled to the claimed exemption and the Collector's decision was upheld.

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Issues: Interpretation of customs notification for exemption of parts for setting up or assembly of specified articles under Chapter 84 or 85.

Analysis:
1. The judgment concerns the interpretation of a customs notification (No. 155/86-Cus.) dated 1st March, 1986, regarding the exemption of parts required for setting up or assembly of specified articles under Chapter 84 or 85 of the Customs Tariff Act, 1975.

2. The Table under the notification specifies the rates of duty for various articles falling under specific headings, including heading No. 84.06 for steam turbines. The petitioner imported steam turbines and other related parts for setting up a new unit for manufacturing sulphuric acid and alum at Haldia.

3. The petitioner claimed exemption under Notification No. 59/87-Cus. for steam turbines excluding parts, based on a lower duty rate of 45% ad valorem. However, the Assistant Collector of Customs contended that the exemption under Notification No. 155/86-Cus. applied specifically to parts required for setting up or assembly of specified articles.

4. The petitioner argued that the term "initial setting up" in the notification referred to the entire factory setup and not just the specific articles listed in the Table. However, the court disagreed, stating that the notification clearly referred to parts required for setting up the articles specified in the Table.

5. The Collector (Appeals) upheld the Assistant Collector's decision, stating that the petitioner was only entitled to the exemption under Notification No. 59/87-Cus. for steam turbines excluding parts, not under Notification No. 155/86-Cus. for parts required for setting up specified articles.

6. Consequently, the court found no merit in the petitioner's application and dismissed it, discharging any rule and vacating interim orders. The judgment affirms that the petitioner was not entitled to the exemption under Notification No. 155/86-Cus. for parts imported for setting up the specified articles under Chapter 84 or 85.

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