Project Import benefit denied for machinery bought to modernise an existing plant rather than for initial setting up or expansion.

Imported machinery acquired for modernisation of an existing plant did not qualify for Project Imports under Heading 84.66 because it was neither for initial setting up nor for expansion. The Tribunal followed the earlier view relied on by the parties and treated classification under Heading 84.37(2) as not in dispute. The importer's claim for Project Import benefit was therefore rejected.

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Issues: Whether the imported machinery was entitled to the benefit of Project Imports under Heading 84.66.

Analysis: The machinery was acquired for modernisation of the existing plant and was neither for initial setting up nor for expansion. On that basis, the claim for Project Imports failed. The earlier Tribunal view relied upon by the parties was followed, and the position regarding classification under Heading 84.37(2) was treated as not in dispute.

Conclusion: The benefit of Project Imports was not available to the importer, and the claim was rejected.

Ratio Decidendi: Machinery acquired for modernisation of an existing plant, and not for initial setting up or expansion, does not qualify for Project Import benefit.

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