Project import benefit denied for transport vehicle used to move transformers, as it was not integral to the power project.

A self-propelled vehicle imported to transport transformers from railway yards to sub-station erection sites was held not to qualify as project import under Item 84.66. The tariff entry covered auxiliary equipment and related components only where they were required for the initial setting up or substantial expansion of the specified power project. Because the vehicle merely shifted transformers to the work site and was not an integral part of the power project itself, it did not fall within the project-import benefit. Customs authorities were therefore correct to deny assessment as project import.

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Issues: Whether a self-propelled vehicle imported for transporting transformers to sub-station sites qualified as project import under Item 84.66 of the Tariff entry.

Analysis: The relevant tariff entry extended project-import treatment to auxiliary equipment and related components required for the initial setting up of a specified power project or its substantial expansion. A vehicle used only for shifting transformers from railway yards to erection sites did not form an integral part of the power project and was not auxiliary equipment for the project itself.

Conclusion: The imported vehicle was not eligible for assessment as project import, and the customs authorities correctly denied the benefit.

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