TaxTMI 
TaxTMI 
2025 (3) TMI 855
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.... CTH 8455 30 00 as "Capital Goods" and availing the benefit of Notification No. 104/2009-Customs dated 14.09.2009. 3. Based on the investigation taken up by DRI, a SCN was issued alleging that imported "Work Rolls" are not standalone Capital Goods. Since they are only "Parts or Spares of Capital Goods" of Rolling Mills. As per the terms of Notification No. 104/2009-Customs dated 14.09.2009, only 10% of the value of the scrips should have been used for payment of duty, whereas the entire value of the scrip was utilized by the appellant. After due process, the Adjudicating authority confirmed the demand. Being aggrieved the appellant is before the Tribunal. 4. The Ld Advocate appearing on behalf the appellant takes us through the factual details which are summarized as under : (1) Work Rolls are used in Rolling Mills in the factory of the Appellant to ensure movement and processing of products such as slabs into plates, HR Coils/Sheets, CR Coils/Sheets etc. (2) Rolling Mill is a machine wherein metal strips are transported and thickness (of the Slabs/Hot Rolled Steel Coil/Cold Rolled Steel Coil) is reduced by passing the strip through rotating rolls under pressure. (3) In a b....
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...., machine tools, catalysts for initial charge, equipment and instruments for testing, research and development, quality and pollution control. Capital goods may be for use in manufacturing, mining, agriculture, aquaculture, animal husbandry, floriculture, horticulture, pisciculture, poultry, sericulture and viticulture as well as for use in services sector." (10) It is submitted that the definition of capital goods are wide enough to include "work rolls". As explained in the factual portion above, Work Rolls are used in Rolling Mills in the factory of the Appellant to ensure movement and processing of products such as slabs into plates, HR Coils/Sheets, CR Coils/Sheets etc. Therefore, such Work Rolls are capital goods themselves and not spares and parts of capital goods. (11) The appellant has been treating the Works Rolls as Capital Goods for accounting purpose and Income Tax Department has been allowing the same to be treated as Capital Goods (12) It is submitted that the Work Rolls imported by the Appellant is classifiable under CTH 8455 33 00. The Spares parts are covered under CTH 8455 90 00 (13) It is submitted that Work Rolls imported by the Appellant specifically fa....
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.....2009 , specifically mentions at Para 4 that in respect of "Parts or Spares of Capital Goods", only 10% of the value of the scrips could be used for payment of duty. The appellant has contravened this provision. Hence, he justifies the confirmed demand. 6. Heard both the sides and perused the Appeal papers, Synopsis and other documents placed before. 7. The issue to be resolved in this case is as to whether, the Works Rolls imported by the appellant can be treated as Capital Goods as is being claimed by the appellant or the same is to be treated as spare parts of the Capital goods, as is being claimed by the Revenue. If the contention of the Revenue is found to be correct, then the appellant would be eligible to utilize on 10% of the scrip amount to discharge the Customs Duty and the balance 90% is required to be paid by way of cash [TR 6 / GAR7 Challan]. 8. The appellant has enclosed the pictures of the Works Rolls used in the manufacturing process. For the sake of convenience, the same are being extracted below : 9. From the above picture, it can be seen that the Works Rolls are attached to the machinery and are being used, in the factory of the appellant without the Works Ro....
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....ectly, 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 Mill Complex. It is pertinent to state that respondent has set up integrated steel plant at Vijayanagar, Karnataka. The contract clearly shows the import of entire supply of equipments of plant and machinery of CAL & CGL. Obviously when the respondents are to import as per the contract the whole plant and machinery for CAL & CGL, the entire goods cannot be imported in one lot under single Bill of Entry. The LAA has brought out a detailed findings on this issue and we find that equipments imported under the invoices are nothing but CAL & CGL and also considering the price, it is a single contract price and the goods are rightly to be considered as capital goods. The definition of "capital goods" given in Foreign Trade Policy are one and the same for EPCG licence or for SHIS Licence. The department cannot take a different stand for the same goods as "capital goods" in EPCG scheme and not capital goods und....
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....w the appeal on merits. 15. Further we also observe identical issue was before this Bench in the case of Comm. of Customs (Port), Kolkata vs. M/s. Cosmic Ferro Alloys Limited, 2024 (8) TMI 674 - CESTAT KOLKATA. In that case, the goods in question were "Roller Sets", "Blades for Slitting Machines", "Spacers" & "Spares for Cold Rolling Mills" and the issue was whether the import of such goods would be be covered by the definition of "Capital Goods" under Notification No. 104/2009-Customs dated 14.09.2009. This Bench has held as under : "11.1. From the impugned order, we observe that the importer has debited the duty payable for the goods imported, from 3 (three) Status Holder Incentive Scrips (SHIS) and availed the benefit of the Notification No. 104/2009-Customs dated 14-09-2009, as amended. However, Revenue alleged that the Respondent is not entitled for the benefit of the said Notification as they failed to comply with the conditions laid down in the said Notification. The allegation of the Revenue is that the imports are neither related to 'Capital goods imported earlier' nor are 'Capital goods' themselves and hence cannot be imported under SHIS license by clai....