TaxTMI 
TaxTMI 
1997 (12) TMI 325
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....ue has to be decided in the context of the definition "Industrial Plant" as set out in the Project Import Regulations. He has pleaded that the goods which are covered under T.H. 98.01 have to conform to the description as set out under 98.01 read with Note 2 of Chapter 98. According to this the Heading 98.01 is to be taken cover the goods which are imported in accordance with the Regulations made under Section 157 of the Customs Act, 1962 and the expressions used in this heading shall have the meaning assigned to them in the said regulations. He pointed out that the goods as covered have to answer to the use in the Industrial Plant or for expansion thereof. He, in this connection, referred us to the definition of the Industrial Plant as set out in the Project Import Regulations, 1986 and also to the terms of substantial expansion as set out in the definition and the same are reproduced for convenience of reference as under :- 3. Definitions. - For the purposes of these regulations, - (a) "industrial plants" means an industrial system designed to be employed directly in the performance of any process or series of processes necessary for manufacture, production or extraction of....
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....hops and a single machine or a composite machine within the meaning assigned to it in Notes 3 and 4 to Section XVI of the First Schedule. `Unit' has been defined a self-contained portion of an industrial plant or of a project specified under Heading 98.01 and having an independent function in the execution of such project. New Regulations also require an application to be made containing various particulars and supported by various documents as stipulated in the old Regulations. Clauses (5) and (6) of 1986 Regulations also enable proper officer to register the contract on being satisfied that the application is in order. In other words broad scheme of the 1965 Regulations has been followed in 1986 Regulations except that the latter contains definition of industrial plants making it clear that Plant takes in only system employed directly in the performance of any process necessary for manufacture, production or extraction of a commodity. The definition would clearly exclude port facility as in the case at hand. The definition incorporated in the 1986 Regulations appears to be only by way of clarification since doubts had arisen under the 1965 Regulations. Absence of definition in 19....
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....o 6 above. He has pleaded that the description of the items under T.H. 98.01 clearly goes to show that the items as are covered under this heading are industrial plant and things required for the same. He highlighted the fact that what is covered in the definition of Industrial Plant is the industrial system and items required for setting-up of the same or expansion of the same and these have to be taken to be covered under T.H. 98.01. 8. He has pleaded that what is required for substantial expansion has to be decided by the concerned Ministry i.e. by the authority charged with the responsibility for the purpose. He has pleaded in the present case, the concerned Ministry had certified that the goods in question were required for substantial expansion. He has pleaded that the fact regarding use of the material imported for the industrial plant having been certified, the Customs authorities could not reopen the same issue. In this connection, he referred us to the Regulations 5(2) of the Project Import Regulations which is reproduced below for convenience of reference :- (2) The importer shall apply, as soon as may be, after he has obtained the import trade control lice....
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.... 14, 16, 21 and 22 in the judgment. He pleaded that in that case the Hon'ble Supreme Court took note of the fact that in the manufacture of salt, series of processes were involved and that in relation to the manufacture implies not only the production but the various stages through which the raw material is subjected to change by different operations and after taking into consideration the meaning of the term process and handling of the material was considered by the Hon'ble Supreme Court as a "process" and that any activity which was essential for production of different articles has been held by the Supreme Court as the "process". In this background, he has pleaded that the transmission of Ammonia from the offshore to the respondents' factory should be considered as a "process" for the manufacture of the goods by the respondents. 12. The ld. JDR for the department pleaded that for assessment purposes, the competent authority was the Assistant Collector and has pleaded that in the definition of Industrial Plant, the restricted meaning has been given to the term "Industrial Plant", covering an industrial system designed to be employed directly in the performance of any proc....
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....e the word "plant" includes within its ambit of buildings and equipments used for manufacturing purpose. Section 43(3) of the Income-tax Act, 1961, gives an inclusive definition of the expression plant in these words : "plant" includes ships, vehicles, books, scientific apparatus and equipment used for purposes of business of profession". 15. In the Shorter Oxford English Dictionary, the term PLANT is defined as under :- "The fixtures, implements, machinery, and apparatus used in carrying on any industrial process." 16. In the Webster's New Collegiate Dictionary, the term `plant' is defined as under : (a) "The land, buildings, machinery, apparatus, and fixtures employed in carrying on a trade or an industrial business". (b) a factory or workshop for the manufacture of a particular product." 17. From this, it would appear that the term "Industrial plant" as are used in the tariff which has been employed in the Project Import Regulations as the industrial system has to be something which is located within certain geographical parameters and the equipments employed therein have to be taken to be constituting industrial plant or the industrial system. I....