1997 (8) TMI 240

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....f the steel sheets/plates imported for fabrication of rocket motor hardware for a single shot application, to the benefit of exemption Notification No. 70/87-Cus., dated 1-3-1987 (as amended). In Notification No. 70/87-Cus., dated 1-3-1987, the consumable goods and spare parts required for the purpose of research when imported into India by any public-funded research institution enjoy full exemption from the customs duty subject to the specified conditions. The appellants cleared the goods on payment of appropriate duty. Subsequently, they filed a refund claim which was rejected by the Asstt. Collector, Customs as unsubstantiated. On appeal, the Collector, Customs (Appeals) observed that the goods in question steel sheets/plates were for fa....

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....that steel sheets/plates were not in the nature of the consumable goods and they had been used for fabrication of welded pressure vessels and remanded as such without being consumed in the process of fabrication. He prayed for rejection of the appeal. 5. We have carefully considered the matter. The goods imported were steel sheets/plates. They were used in the fabrication of major sub-system rocket motors for Indian Space Research Organisation Launch Vehicle. In the technical write-up/end-use dated 31-7-1989, the Asstt. Purchase Officer for the appellants stated as under : "Steel plates/sheets conforming to the 15 CDV6 specification are low carbon high strength steels. These sheets of the required dimensional tolerances, properti....

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....way. The steel sheets/plates which are used in the fabrication of rocket motors did not loose their identity as sheets and plates. No other goods were produced out of such sheets and plates which had been imported cut to specific sizes. Paddy is consumed when rice is produced from it by carrying out the process of dehusking at the mill, the miller who converts wheat into flour and the flour is utilised by the baker to manufacture bread out of it. Thus the miller and the baker have consumed wheat and flour respectively in course of their business (Refer to Supreme Court decision in the case of State of Karnataka v. B. Raghurama Shetty - (AIR 1981 SC 1206). The steel sheets/plates did not lose their identity even when they were not available/....