1986 (9) TMI 249 - AT - Customs

Tribunal denies refund for Customs duty on imported vehicle under Project Imports Regulations

The Tribunal upheld the Custom House's decision to refuse registration of a contract under Project Imports Regulations, denying the appellants' ... Project import - Power Project Issues involved:The issues involved in this case are:(i) Whether power transmission projects fall under the purview of 'Power Project' under Tariff Heading No. 84.66(i)(DX3) of the Import Tariff.(ii) Whether the imported vehicle qualifies as an auxiliary equipment for the power transmission project.(iii) Whether the vehicle imported for the initial setting up of multiple transmission projects is eligible for assessment as 'Project Import' under the relevant Tariff Heading.Summary:In this case, the appellants sought to set aside an order rejecting their application for registration of a contract under the Project Imports Regulations to obtain a refund of excess Customs duty paid. The dispute arose from the import of a vehicle for transporting transformers to various sub-stations under transmission projects in Punjab and Haryana. The Assistant Collector and the Appellate Collector had both denied the registration of the contract, leading to this appeal.The appellants argued that all procedural requirements for registration were met, and the imported vehicle was essential for the initial setup of transmission sub-stations. They contended that the vehicle qualified as auxiliary equipment under the relevant Tariff Heading and should be considered for Project Import benefits. However, the Departmental Representative argued that the vehicle did not exclusively serve a single project and was later diverted to other projects, thus not meeting the criteria for Project Import eligibility.After careful consideration, the Tribunal found that the transmission sub-stations were not 'Power Projects' as they did not involve power generation, a key aspect of such projects. Additionally, the term 'auxiliary equipment' was interpreted strictly, leading to the conclusion that the imported vehicle did not qualify as such. Even if it did, the vehicle did not meet the specific requirements for assessment as 'Project Import' under the Tariff Heading. Therefore, the Tribunal upheld the decision of the Custom House to refuse registration of the contract and dismissed the appeal.