1998 (5) TMI 124

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....Counsel appearing on behalf of the appellants submits that the appellants applied for registration of the contract for initial setting up of a project for manufacture of portable generator set. The contract was registered under the Project Import Regulations, 1986 and the appellants were allowed to import the goods for initial setting up for project for manufacture of portable generator set at the concessional rate of duty under Tariff Heading 98.01 of the Customs Tariff. He submits that the plant for manufacture of portable generator set was commissioned in February, 1988. He submits that on 4-12-1989, the appellants made a request to the Customs Authorities for registration of contract for the import of `dies and spares' for manufacture o....

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....acture of rotors and stators on 4-12-1989. Initially, the appellants applied for registration of the contractor initial setting up of project for manufacture of portable generator set. The contract was registered and the appellants were allowed to import plant and machinery for initial setting up for manufacture of portable generator set. The plant for manufacture of portable generator set was started production in February, 1988. The appellants filed reconciliation statement as required under the Project Import Regulations, 1986. 6. In the application dated 4-12-1989 filed by the appellants for registration of the contract for import of dies and spares, the appellants mentioned that towards our endeavour to indigenise these compone....

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....t Tariff Heading 98.01 of the Customs Tariff provides concessional rate of duty to the machinery, instrument, apparatus and appliances for initial setting up of a unit or for substantial expansion of the existing unit. In the present case, the appellants are not importing the `dies and spares' for initial setting up of the plant for manufacture of portable generator set or for substantial expansion of the plant. 9. The case-law relied upon by the appellants is not applicable to the present case. The Hon'ble High Court of Calcutta in the case of Asiatic Oxygen Ltd. v. Asstt. Collector of Customs - 1992 (57) E.L.T. 537 held that cylinders were necessary for initial setting of the said unit. It is not disputed that the cylinders to be ....