TaxTMI 
TaxTMI 
2025 (11) TMI 1112
X X X X Extracts X X X X
X X X X Extracts X X X X
....nd received eighteen SHIS (Status Holder Incentive Scheme) scrips under the Foreign Trade Policy (2009-14). 5. The Appellant imported the following goods vide thirteen Bills of Entry by utilizing ten out of eighteen SHIS scrips thereby availing the benefit under Notification No. 104/2009-Cus dated 14.09.2009 as amended by Notification No. 42/2012-Cus dated 22.06.2012. * High Dimension Thickness Sander-used in the Appellant's plants for sanding (i.e., brushing by sand paper at high speed in a machine) the plywood to ensure a smooth and uniform level surface. It is a standalone machine performing the desired task. * Fiber Destruction Machine-used for the purpose of undertaking fiber destruction prior to feeding the veneer in the dryer. This machine forms a part of the synchronized operation in the manufacture of plywood. * PLC [Programmable Logic Controller] operated core builder-Specific process machine undertaking all in one complete operating process by performing a host of functions from feeding, tenderizing, thickness detecting, edges cutting, jointing with glue, loading automatically to final levelling stack thereby ensuring the jointing of assorte....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nt. 8. After completion of the enquiry, a Show Cause Notice (hereinafter referred to as 'SCN‟) dated 04.01.2016 was issued by the DRI proposing to deny the benefit of the exemption notification for the following reasons: i. from the description of the goods imported, read with the customs tariff heading and the definition of capital goods/spare/parts/components under Chapter 9 of the Foreign Trade Policy/Notification No. 104/2009-Cus., none of the impugned goods appear to qualify as capital goods. Rather they appear to be spares/parts/components of capital goods; ii. the impugned goods were also not pertaining to any of the capital goods which were imported under the SHIS scrips earlier; iii. SHIS licenses were used for debit of duty against import of goods namely spares/parts/components of capital goods in excess of permissible limit of 10% value of the scrip; and iv. no bonds were furnished for actual user condition at the time of import of the impugned goods. 9. The Appellant filed a detailed reply vide a letter dated 13.12.2016 rebutting all the allegations raised in the SCN. However, without considering the submissions made in th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the plant. 15. He further submits that from a bare perusal of the facts read with relevant technical documents, it emerges that: * The High Dimension Thickness Sander, Fiber Destruction Machine, PLC [Programmable Logic Controller] operated core builder and Glue Spreader are standalone machines having independent function. * Steel Caul Plates/ Stainless Steel Press Plates, Aligner System and Circular Saw Blades have been imported along with the machine lines of which they are integral parts, but vide separate bills of entry since the machines lines are bulky. * Cross Correction Modules, Fan Wheel Drivers and Rotor for Chippers are equipments, which are used for the replacement, modernization etc. of the components/ assemblies of existing fully automatic press line, chipper machines installed in the factory. 16. Therefore, the subject goods would qualify under the definition of capital goods themselves and not as parts/spares/components of capital goods. 17. He also relied on M/s La Opala RG Limited v. Commissioner of Customs (Port) Kolkata, 2025-VIL-715-CESTAT-KOL-CU, wherein this Tribunal, after perusing the functions of the items imported by the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ny other substantive evidence. 22. It is submitted that the Ld. Commissioner has solely relied on the statement of Mr. Vinod Agarwal General Manager (Imports), which was recorded in terms of Section 108 of the Customs Act. The impugned order does not rely on or provide any other substantive evidence to corroborate the statement made by the concerned person. It is submitted that the department has failed to adduce any other documentary evidence to contradict the claim of the Appellant, to avail the benefit under the SHIS scheme. 23. It is submitted that it is a settled principle of law that the statements made by any person under Section 108 of the Customs Act does have evidentiary value, however, the same is required to be corroborated with additional substantive evidence, to confirm demand of duty. In this regard, he relied on the following decisions: i. M/s Krishna Impex International v. Commissioner of Customs (ICD), New Delhi, 2025-TIOL-926-CESTAT-DEL ii. Azizur Rahman v. Commissioner of Customs, 2012 (285) E.L.T. 401 (Tri. Kolkata) iii. Sanjay Kumar Agarwal v. Commissioner of Customs, 2016 (331) ELT 81 (Tri.-Mum) 24. He also contended that e....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Section 28(4) of the Customs Act, 1962 is liable to be set aside. Since the demand itself is not sustainable, consequent interest and penalty is not imposable. 30. We find that in this case the appellant has imported the following goods description there are as under: (i) "Capital goods" means any plant, machinery, equipment or accessories required for manufacture or production, either directly or indirectly, of goods or for rendering services, including those required for replacement, modernization, technological upgradation or expansion. It also includes packaging machinery and equipment, refractories for initial lining, refrigeration equipment, power generating sets, 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." 31. And at the time of clearance of the goods the goods were examined and allowed to be cleared as "capital goods". These facts are not in dispute....