TaxTMI 
TaxTMI 
2025 (5) TMI 1735
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.... at Madhupur, Jharkhand and at Sitapur, Uttarakhand. For the manufacture of their final products in the factories, the appellant requires goods like crucible pot, abrasive belt, pot ring, PVA wheel, beveling cone and refractories. 1.1. During the period from December 3, 2012 to February 16, 2015, the appellant imported the above mentioned goods vide 14 nos. of Bills of Entry. The Customs authorities upon due verification and assessment allowed importation of the said goods utilizing 12 nos. of Status Holder Incentive Scrips (SHIS). 1.2. Later, the Directorate of Revenue intelligence (DRI) initiate investigation and issued a Show Cause Notice dated 10 September, 2015 alleging that the appellant had contravened the provisions of the Customs....
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.... the duty demand of Rs.57,94,958/-, along with interest thereon. The Ld. Commissioner also appropriated the amount of Rs. 40,29,822/- and Rs.3,17,210/- deposited by the appellant during the course of investigation, against the confirmed demand of Rs.57,94,968/-. Further, a penalty of Rs.57,94,958/- was imposed upon the appellant under Section 114A of the Act. 2.1. Aggrieved against the confirmation of these demands, the appellant has filed this appeal. 3. The Ld. Counsel appearing on behalf of the appellant submits that 'Capital goods', as defined in para 9.12 of the Policy, means 'any' plant, machinery, 'equipment' or 'accessories' required for manufacture or production, 'either directly or indirectly', of goods including those required ....
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....are Crucible Pot, pot Ring, Abrasive Belt, PVA wheels, Bevelling Cone and Refractories. The functions of each of these goods are as under. (i) Crucible Pot A crucible pot is a container that can withstand very high temperatures and is used for glass production. In our furnace there are 12 Pots. Pots are filled up with different chemicals and heated up for 12 hours in night and in a day shift the melted glass is taken out from the Pot and again it is filled up in the night for melting. The life of a pot varies from 20 to 25 days. (ii) Pot Ring A floating Refractory Ring on the surface of the glass melted in a pot to prevent the accumulation of SCUM in the gathering area. (iii) Abrasive Belt Abrasive Belt is used for smoothening t....
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....gradation or expansion of the plant have also been covered within the ambit of 'capital goods'. 6.3. A perusal of the functions of the above items imported by the appellant indicate that each of the said goods have specific functions, which are essential and they aid in the manufacture of glassware by the appellant. Thus, we observe that all these goods duly satisfy the requirement of being an "accessory" or "equipment" mentioned in the definition of 'capital goods'. We find that these goods are required for "manufacture or production, either directly or indirectly" of glassware by the appellant. Accordingly, we find that the goods imported by the appellant are 'capital goods' themselves and hence the restriction of....