TaxTMI 
TaxTMI 
1997 (12) TMI 387
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.... to as `Cylinders'). The cylinders were proposed to be imported for meeting the targeted production of dissolved acetylene (DA) gas plant already commissioned in July, 1985. The Heading No. 98.01 of the Customs Tariff related to the project imports attracting concessional rate of customs duty. The ground on which the benefit of project imports was sought was that the initial setting up of the plant, was not completed. The appellants had placed purchase order dated 18-3-1988 on the foreign suppliers for import of the above cylinders and applied for registration of their purchase order with the Customs under the Project Imports Regulations, 1986 on 25-1-1988. The application was rejected by the Asstt. Collector of Customs, Calcutta, on the gr....
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.... order-in-original as confirmed by the Collector of Customs (Appeals). 5. We have carefully considered the matter. OAPL were granted an industrial licence (carry on business) on 22-9-1984 by the Ministry of Industry, Department of Industrial Development, for setting up a project for the manufacture of oxygen gas and D.A. gas with the following provisional installed capacity : Oxygen Gas ................................. 1 million cu.m. D.A. Gas ...................................... 0.20 million cu.m. 6. According to para 5 of the Industrial Licence, the undertaking was to be completed and commercial production established within a period of one year from the date of issue of the Industrial Licence. The Industria....
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....that the cylinders were required for initial setting up of the plant and recommended for grant of concessional rate of customs duty under project imports Heading No. 98.01. In the meanwhile, the OAPL had placed purchase order on 18-3-1988 with the foreign suppliers for import of 900 numbers of DA gas cylinders of 40 litres water capacity. On 25-1-1989 an application was filed with the Asstt. Collector of Customs for registration of the contract which was dated 18-3-1988 on the ground that the cylinders were required for initial setting up of the project. 7. According to para 5 of the industrial licence, the undertaking was to be completed and commercial production established within a period of one year from the date of issue of the....
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....ustoms duty under project import. M/s. Orissa Air Products are having an industrial licence No. IL 317(84), dated 22-9-1984 for manufacture of industrial gases. On the basis of our recommendation for import of cylinders, office of the CCI&E have issued import licence No. P/CG/2042673, dated 20-1-1988 for import of 900 nos. of empty DA cylinders of 40 litre water capacity for a total cif value of Rs. 11,62,100/-. These cylinders are required for initial setting up of the plant. As such this office recommends the concessional rate of customs duty under Para 98.01 of Indian Tariff & Customs Act, 1986-87 in favour of M/s. Orissa Air Products Ltd. Kindly note that earlier recommendations issued vide this office of even number dated 16-5-1988 in ....
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....f the cylinders for its packing, the first stage is already over. The facts of this case establish that the import of the DA gas cylinders was part of the initial setting up of the undertaking for meeting the requirements of licensed capacity. This was the first import of DA gas cylinders in this case. 11. We find that in the case of Asiatic Oxygen Ltd. v. Asstt. Collector of Customs - 1992 (57) E.L.T. 563 (Cal.), the Calcutta High Court had observed that the setting up in the context of Project Imports meant to complete and that the phrase "initial setting up" was not in consistent with phased implementation. The High Court had also observed that the recommendations of the DGTD could not be dismissed. Paras 14, 15, 16 & 17 from tha....