2018 (11) TMI 1165

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....for online self clearing filters for drinking water as an 'Initial Setup'. The Revenue was of the view that the proposed import was only a "filter" for purification of water, which was not meant for initial setting up of a "unit" or for the substantial expansion of the existing unit as per the Tariff Entry. The Revenue was of the further view that the proposed import being a single/composite machine for the purpose of purification of water, could not be classified as a "project" under Customs Tariff Heading 9801. On being put on notice in the above lines, the assessee filed a detailed reply explaining the functional details of the goods proposed to be imported. The assessee also relied on the Board's Circular T.R.U. No. 659/50/2002-Cx. dt. ....

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....for purification of water which was meant for setting up or expansion of a unit. Further, it is the case of the Revenue that as per Regulation 3(a)(ii) of the Project Import Regulation, 1986, a single machinery or composite machinery will not constitute a unit or project and, therefore, the proposed import being a single/composite of machines for the purposes of purification of water, cannot be classified as a project under Customs Tariff Heading 9801. It is his further contention that where a machine consists of individual components, whether separate or interconnected, intended to contribute together to a clearly defined function covered by one of the headings in Chapter 84 or 85, then, the whole falls to be classified under the heading a....