Project import classification under Heading 98.01 excludes photographic studios and film laboratories from concessional duty treatment.

Chapter 98 of the Customs Tariff Act operates with overriding effect only for imports made in accordance with the Project Import Regulations, 1986, and Note 2 requires Heading 98.01 to be read with the meaning assigned in those regulations. On that scheme, the regulation-making power under the Customs Act supported the definition of "industrial plant" in Regulation 3(a), and the exclusion of photographic studios, film processing laboratories and similar service establishments was within that framework. The later tariff entry and 1986 Regulations therefore governed the classification, and the earlier position under the old heading and 1965 Regulations did not control. Imported photographic machinery for studios or film laboratories was outside Heading 98.01 and did not qualify for concessional project-import treatment.

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Issues: Whether photographic machineries and industrial systems imported for photographic studios or film processing laboratories fell within Tariff Heading No. 98.01 and qualified for concessional duty, and whether the definition of "industrial plant" in the Project Import Regulations, 1986 was within the regulation-making power conferred by the Customs Act and the Customs Tariff Act.

Analysis: Chapter 98 of the Customs Tariff Act was held to have overriding effect, but only for goods imported in accordance with the regulations made under Section 157 of the Customs Act. Note 2 of Chapter 98 expressly provided that the expression used in Heading No. 98.01 would have the meaning assigned in those regulations. On that scheme, the Board was competent to define "industrial plant" in Regulation 3(a) of the Project Import Regulations, 1986, and the exclusion of photographic studios, photographic film processing laboratories, and similar service establishments was within the legislative mandate. The earlier position under the old heading and the 1965 Regulations did not control the interpretation of the later tariff entry, because the statutory framework had changed and the heading had to be read with the 1986 Regulations.

Conclusion: The imported goods did not fall under Heading No. 98.01, the definition in the 1986 Regulations was valid, and the petitioners were not entitled to the concessional project-import benefit.

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