2006 (7) TMI 402

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....try filed for its clearance claimed the benefit of Customs Notification No. 21/2002 dated 1-3-2002 (as amended) in respect of Basic Customs Duty (BCD) and the benefit of Central Excise Notification No. 6/2002 dated 1-3-2002 (as amended) in respect of Additional Customs Duty (CVD). The Customs Notification prescribed effective rates of 5% and 16% for BCD and CVD respectively, while the Central Excise Notification prescribed nil rate of duty for "non-conventional energy devices/systems specified in List 9". The said List 9, at Sl. No. 16, mentioned "agricultural, forestry and agro-industrial, industrial, municipal and urban waste conversion device producing energy". The goods were cleared in terms of the Customs notification. However, a dispu....

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....y did not, by itself, constitute project import. The project import under CTA Heading 98.01 became complete with the import under consideration, a few parts of the project import having been made earlier. The Customs notification specifically covered the entire project import classified under CTA Heading 98.01, whereas the Central Excise notification granted exemption from payment of duty of excise on any non-conventional energy device/system falling within any Chapter of the CETA Schedule. It is also submitted that the item imported by the respondents was not shown, by them, to constitute, by itself, a non-conventional energy device or system. In the circumstances, the benefit of the Excise notification cannot be claimed by the assessee. ....

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....im the benefit of any other notification. Learned SDR also refers to the Apex Court's decision in Tamilnadu Newsprint & Papers (supra), in support of her argument that, where exemption is available to an item imported under project import scheme, exemption from payment of customs duty or additional duty of customs could be claimed only under the relevant Customs notification. It is submitted that, in the event of any conflict between the Apex Court's decisions in the cases of Mahavir Aluminium Ltd. (supra) and Tamilnadu Newsprint & Papers (supra), the latter being the later one would prevail. 4. We have given careful consideration to the submissions. It is not in dispute that the 'steam turbine' per se is not capable of generating e....