TaxTMI 
TaxTMI 
2000 (10) TMI 64
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.... expression 'specified' in the Tariff item 84.66 of CTA includes named project in a particular place or in several places? 2. Shri L.P. Asthana, learned Advocate, mentioned that the Appellants are engaged in the setting up of industrial units such as fertiliser plant; that M/s. Indian Farmers Fertilisers Cooperative Ltd. entered into a contract with their parent Co. M/s. Toyo Engineering Corporation, Japan for designing, engineering, fabricating and commissioning an Ammonia Storage Package Unit and Co-generation Plant; that their Parent Co., in turn, entered into a contract with them to carry out all the works, services, erection and commissioning on turn key basis; that they filed an application on 17-3-1986 with the Contract Registration Cell for benefit under the Project Import Scheme read with Notification No. 72/85-Cus., dated 17-3-1985 in respect of goods sought to be imported. He, further, mentioned that the Appellants imported various special construction equipments, available at their overseas project at Kuwait, and filed eleven Bills of entry in March, 1986 for the clearance of goods which were cleared on payment of duty under protest; that the Assistant Collector, und....
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...., (4) mining project, (5) project for the exploration for oil or other minerals, and (6) such other projects as the Central Government may, having regard to the economic development of the country notify in the official gazette in this behalf; and spare parts, other raw materials (including semi-finished material), or consumable stores not exceeding 10% of the value of the goods specified above provided that such spare parts, raw materials or consumables stores are essential for the maintenance of the plant or project mentioned in 1 to 6 above." 4. The learned Advocate has submitted that fertiliser plant is covered by Industrial Plant mentioned at Srl. No. 1 in Heading No. 98.01; that the construction machinery imported by them is covered by auxiliary equipment mentioned in the heading and were required for the initial setting up of the unit; that Heading 98.01 is applicable to all items of machinery required for the specified project for the purpose of initial setting up or for the substantial expansion of such project; that auxiliary equipments cannot become part and parcel of the plant; that any equipment which becomes part and ....
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.... 5. Heading 98.01 covers all the items of machinery including prime movers, instruments, apparatus and appliances; control gear and transmission equipment, auxiliary equipments besides components and raw materials required for the initial setting up of a unit or the substantial expansion of an existing unit of a specified industrial plant. We are of the view that the fertiliser plants, for the initial setting up of which the impugned goods were imported by the appellants, is covered by the expression 'industrial plant' as it is designed to be employed directly in the performance of processes necessary for manufacture of fertiliser. Once the fertiliser plant is covered by the industrial plants specified in Heading 98.01 of C.T.A., all the auxiliary equipments which are required for the initial setting up of the unit can be imported under the Project Import Scheme. Auxiliary means giving additional help; supplemental or subsidiary; an item not directly a part of a specific component or system but required for its functional operation (Words and Phrases of Excise and Customs by S.B. Sarkar). According to the World Book Dictionary, 'auxiliary' means, "a person or thing that hel....
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....nce of a contract specifically registered for import of construction material; Note (2) to Chapter 98 according to which Heading 98.01 would apply to goods which are imported in accordance with the Project Imports Regulations, 1986. The learned D.R. also referred to Regulation 4, according to which the assessment under Heading 98.01 shall be available only to those goods which are imported against one or more specific contract which have been registered with the appropriate Customs House and submitted that in the absence of a specific contract being registered Heading 98.01 will not be applicable to the impugned goods imported by the Appellants. He also relied upon the decisions in the case of Dunlop India Ltd. v. C.C., 1997 (95) E.L.T. 162 (S.C.), Mihir Textiles v. C.C., 1997 (92) E.L.T. 9 (S.C.); Ajanta Offset and Packaging Ltd. v. C.C., 1997 (94) E.L.T. 443 and U.O.I. v. Indian Chrome Charge Ltd., 1999 (112) E.L.T. 753 (S.C.) wherein it was held that the benefit of concessional duty under Project Import is not available if the goods had arrived before the application was submitted for registration of the goods. In support of his contention that classification of the goods has to....