2017 (9) TMI 1510

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....rios S.P.A. Italy. Appellants had sought to clear the items as parts of Bi Polar Membrane Electrolyser claiming benefit of Notification No. 21/2002-Cus. Sl. No. 285, as amended. However, the claim of the appellant was rejected and goods were classified under CTH 81089090 and assessed to duty accordingly. On appeal filed by the importer, Commissioner (Appeals), vide impugned order dated 17.1.2008 rejected the same. Aggrieved the appellants are before this forum. 3. Today, when the matter came up for hearing, ld. counsel Shri V.S. Manoj appearing on behalf of the appellant made oral and written submissions which can be summarized as under:- (a) Titanium Pipes and Fittings have been imported to handle brine to feed the Bi Polar Membrane Elec....

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....t and machinery . A part has to be component which is integral to the machinery. Even an accessory cannot be part of a machine. The Notification extends benefit only to parts thereof. The pipes are of general use and therefore cannot be considered to be parts of the machine which is covered under the Notification. 5. Heard both sides and gone through the case records. 6. The core issue that comes up for appellate decision is whether the impugned items can be considered as parts of the Membrane Electrolyser imported separately by the appellants, or otherwise. (a) For better understanding of the dispute, it would be useful to reproduce the relevant portion of the Notification No.21/2002-Cus (as amended) which extended duty benefit to impo....

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....er machinery, required for,- (i) modernization by using membrane cell technology, of an existing caustic soda unit, or (ii) capacity expansion of an existing caustic soda unit using membrane cell technology, or (iii) setting up of a new caustic soda unit using membrane cell technology; (2) Membranes and parts thereof for replacement of worn out membranes in an industrial plant based on membrane cell technology" 7. Thus entry No. 285, as amended, does indicate that the exemption thereat extends to parts thereof including secondary brine purification components, jumper switches, filtering elements for hydrogen filters etc. Evidently, parts of Membrane Electrolyser will also get notification benefit. 8. The Hon'ble Apex Court in the c....