Heading 98.01 for power project imports turns on unit-specific substantial expansion at sub-stations, not the entire network.

Heading 98.01 applies to goods required for the initial setting up of a unit or the substantial expansion of an existing unit of a specified power project. The relevant test is unit-specific, so expansion need not be shown for the entire power distribution network if a sub-station constitutes a separate unit. Sub-station-level expansion can qualify where the increase exceeds 25%. On the facts described, substantial expansion was established for three identified sub-stations, and the breakers installed there were ascertainable; the remaining imported breakers did not meet the requirement and were not eligible under Heading 98.01.

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Issues: Whether imported circuit breakers and connected items were eligible for assessment under Heading 98.01 on the basis that they were required for the initial setting up or substantial expansion of a unit of a specified power project, and whether the substantial expansion had to be of the overall power distribution network or could be of individual sub-stations treated as units.

Analysis: Heading 98.01 applies to items required for the initial setting up of a unit or the substantial expansion of an existing unit of a specified power project. The relevant enquiry is therefore unit-specific and not confined to the overall network as a whole. A sub-station forms a unit of the power distribution project, and expansion at the sub-station level can satisfy the requirement if the increase is substantial, meaning more than 25%. On the facts shown by the sub-station-wise material, substantial expansion was established in respect of three identified sub-stations, and the number of breakers installed at those locations was ascertainable.

Conclusion: The goods installed at the three sub-stations satisfying the substantial expansion threshold qualified for assessment under Heading 98.01, but the remaining imported breakers did not.

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