TaxTMI 
TaxTMI 
TaxTMI 
2015 (10) TMI 2392
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....r continuous annealing line / galvanizing line for cold rolling mill classifying the goods under CTH 84559000 and claimed clearance under Status Holder Incentive Scheme (SHIS) scheme vide Customs Notification No. 104/2009 dated 11.9.2009. The adjudicating authority denied the benefit of exemption notification and also ordered for classifying the goods under various chapters 73, 85, 90 etc. The adjudicating authority held that the goods imported under the said Bills of Entry are not capital goods and not eligible for clearance under SHIS scheme. On appeal, learned Commissioner (Appeals) in the impugned order allowed the appeal of respondents and held that the imported goods are capital goods. Hence, Revenue has preferred this appeal against ....
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.... (c) CC New Delhi Vs Sony India Ltd. 2008 (231) ELT 385 (SC) He also submits that entitlement of CENVAT credit is different for capital goods whereas the import under SHIS scheme 100% credit is allowed. Therefore, import under both cannot be treated at par. 4. On the other hand, learned Advocate for the respondent reiterated the findings of the impugned order. He further submits that as per 9.1.2 of FTP, the capital goods has been defined and the definition is wider and includes whole plant and machinery and not confined to single capital goods or parts. He further submits that the respondents have entered into a contract with foreign supplier for setting up of a new plant at their Hospet unit. He submitted a copy of agreement dated 23.2.....
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....xcise authority for installation certification in compliance of the EPCG licence. He relied on para 9 of Order-in-Appeal. He further submits that definition of capital goods cannot vary from one scheme to another scheme as the FTP is one and when the Department has accepted the same consignment and accepted as capital goods and allowed clearance of same goods when imported and filed SHIS scrip the department cannot deny. He also submits a worksheet submitted before jurisdictional authorities for fulfillment of SHIS scheme showing the list of Bills of Entry and the items imported and the uses, and the installation certificate. As per Sl. No. 3, 5, 7, 8 to the Annexure to Bill of Entry are covered under the present dispute. He further submits....
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....contending that the goods imported by the respondents are not "capital goods" and not covered under SHIS Scheme. On a perusal of the OIA of the LAA, we find that he has discussed and recorded a detailed findings and also discussed the definition of "capital goods" provided under the policy governing SHIS Scheme at paras 7 to 11 and examined the contract agreements with the foreign supplier for arriving at his conclusion as 'capital goods'. On a perusal of copy of the agreement dt. 23.2.2011, we find the respondents had entered into agreement with M/s.JFE Shoji Trade Corporation, Japan for supply of capital goods of Continuous Annealing Line (CAL) and for Continuous Galvanizing Line (CGL) for Cold Rolling Mill Complex. Respondents al....
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....llows exemption of capital goods imported into India against Duty Credit Scrip issued under SHIS Scheme. As per para 3.16 of Foreign Trade Policy the definition of "capital goods" and the definition of "capital goods" as provided in the Explanation under the Notification 104/2009-Cus. are identical to the definition given in the FTP and covers capital goods "plant, machinery, equipment or accessories required for manufacture, production, either directly or indirectly, of goods and includes those required replacement, modernization, technological upgradation or expansion etc.. On a perusal of the contract, it is abundantly clear that respondents are setting up the plant and machinery of the Expansion Project for CAL& CGL in the Cold Rolling ....
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....our TVs in CKD condition and the same cannot be made applicable to this case. The Hon'ble Supreme Court in that case held that those goods which are brought not having essential character of colour TV, it cannot be taken as Colour TVs whereas in the present case, it is the plant & machinery for setting up of new CAL/CGL for Cold Rolling Mill and as per the contract respondent set up expansion project of Cold Rolling Mill Complex where entire plant and machinery including technical advice for installation has been obtained from the supplier as per their agreements. Therefore, the Hon'ble Supreme Court decision relied by Revenue is distinguishable and not applicable to the present case. Further, the present case relates to allowing be....