TaxTMI 
TaxTMI 
2017 (3) TMI 762
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....ive, the learned counsel was given liberty to file written submissions which they have done so. The said written submissions are considered. 3. The relevant facts that arise for consideration, after filtering out unnecessary details, are the appellant herein entered into a bid for Mumbai-Manmad pipeline project which was being laid by Bharat Petroleum Corporation Ltd. (BPCL) for transportation of petroleum goods; was awarded a contract vide letter of acceptance dated 23.12.1996 for laying of the pipeline for which pipes were supplied by BPCL as free issue items. The said project of laying pipeline was notified by the Central Government under Chapter Heading 98.01 of the Customs Tariff Act and by Notification 160/95-Cus. On recommendation o....
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....te of project import and not as independent consumables. 5. Learned departmental representative reiterates the findings of the lower authorities and submits that the items which are imported are not capital goods and only capital goods are permitted to be imported under project imports. The items being consumables, could not have been imported under project imports. 6. On careful consideration of the submissions made, the issue that falls for consideration is whether the items i.e. field joint coating material, welding electrodes, magnetic ribbon and welding material are eligible for concessional rate of duty as per Notification 11/97-Cus. under serial No.226 or otherwise. 7. Undisputedly, the items in dispute are indicated in the Essent....
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....as in the name of the appellant, today it cannot be said that the appellant is ineligible to avail the benefit of the said project import. It is also noticed that the Ministry of Petroleum and Natural Gases, on an application made by the appellant with specific reference to the said project, gave an Essentiality Certificate which is annexed at page 19 of the appeal memoranda. We perused the said Essentiality Certificate. It specifically recommended the appellant s name for availing the benefit of project imports for the concessional customs duty as per the notification and the items to be imported were also annexed to the said permission wherein the imported items which are in dispute in this appeal are indicated. On the face of such Essent....
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....t of the eligibility conditions by the importer for obtaining the benefit of the exemption notification. We may add that, the essentiality certificate is also a proof that an item like Captive Power Plant in a given case could be treated as a capital goods for the fertilizer project. It would depend upon the facts of each case. If a project is to be installed in an area where there is shortage of electricity supply and if the project needs continuous flow of electricity and if that project is approved by the sponsoring Ministry saying that such supply is needed then the Revenue cannot go behind such certificate and deny the benefit of exemption from payment of duty or deny nil rate of duty. To the said effect is the judgment of the Calcutta....
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....could be in a given case an independent Plant. Generally, it is a stand-alone equipment. However, when it becomes a part of the entire Project/System, the same power plant can also become one of the items of capital goods. The essentiality certificate given by the sponsoring Ministry has treated Captive Power Plant, in this case, as "capital goods" along with 13 other items. The assessee has also treated the Captive Power Plant as one of the capital goods required for the expansion of the fertilizer project. In the above circumstances, all the items in the list annexed to the certificate have been certified and recommended by the sponsoring Ministry as the entire capital goods required for the substantial expansion of the fertilizer project....