1996 (9) TMI 246

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....re an existing unit engaged in the manufacture of different goods such as Digital Clocks, Display Element, Computing Electronics Scale, etc. They imported the Computer System and applied for registration under Project Import. The Assistant Collector of Customs rejected their request on the ground that the documents produced indicated that the computer was meant to be used for line testing of the products and that it did not directly contribute to the substantial expansion of the production capacity. On appeal, the Collector of Customs (Appeals), Madras, confirmed the order of the Assistant Collector, Customs on various grounds including the use of computer as disclosed by the appellants to the Department of Electronics. 2. The matte....

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....ackers and (3) the System will be part of their research and development and was to be used for other development activities such as Ticketing Terminals and Cluster Control, etc. They were licensed to produce Ticket Clocks, Display Element, Computing Electronics Scale, Optical and Encoder Industrial Timers, Micro Computer Trainer, Micro Processor based system, Electronic Ticket Printing Machine and Electronic Typewriters. They had not substantiated as for which product the computer was to be used and use for expanding the production capacity. In the case of National Newsprint & Paper Mills Ltd. v. Collector of Customs, Bombay - 1987 (32) E.L.T. 153 (Tri.), the Tribunal had stated that the substantial expansion would apply to a case where th....