2006 (5) TMI 367

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.... facts of the case are that the respondents had got registered a contract for setting up of Ammonia Plant for which capital goods are imported. The project was completed in 1999 and reconciliation statement was submitted. The department was of the view that the benefit of Project Import is not available to Electro Generator and on this basis a show cause notice was issued to the importers on 21-5-2002 proposing recovery of duty of Rs. 9,16,26,038/- by denying Project Import benefit. Another show cause notice dated 22-8-2002 was issued proposing recovery of duty of Rs. 14,05,01,617/- in respect of further 9 Bills of Entry. The notices were adjudicated by Order dated 27-6-2002 upholding the demands; the importers challenged the order before t....

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....o generated, import of medium pressure steam from outside sources is necessary - the import is from the respondents' Utility Plant situated outside the Ammonia Plant. (ii)    The Electro-generator generated approximately 20 MW of electricity at full capacity and since the electricity required to run the Ammonia Plant is in excess of that capacity, some electricity is imported from the grid to run the plant; (iii)   There is no back up for low pressure steam; (iv)   Captive power plants are those which generate electricity for captive consumption only and the respondents' claim that Electro- generator imported by them is different from a captive power plant in that it is not using any additional fu....

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....ike a Captive Power Plant. The above contentions are based upon a report dated 14-5-2002 of the Chartered Engineer, Institute of Engineers, Kolkata. We note that this report was produced by the respondents before the Dy. Commissioner of Customs in the first round of proceedings i.e. before the passing of the Order-in-Original dated 27-6-2002 by which the benefit of Project Import was denied. We also note that the Ministry of Chemicals and Fertilizers, Government of India, New Delhi which is the Nodal Ministry for the respondents has recommended that the import of Electro-generator is exempted from the Customs duty under Notification No. 11/97, dated 1-3-1997 as amended from time to time on the ground that it is an integral part of Ammonia p....