2000 (1) TMI 87

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....47 Ltrs, water capacity for initially setting up of their plant for production of gas. The appellant after registration of the contract under the Project Imports Regulations, 1986 for import of Gas Cylinder filed Bill of Entry and claimed the assessment under Sub-heading 9801.00 of the Customs Tariff. 3. The goods were cleared after grant of the benefit of project import. Thereafter a show cause notice was issued to the appellant denying the benefit of project import and classifying Gas Cylinders on merit. Thereafter, the impugned order was passed denying the benefit of project import and confirming the demand of differential customs duty. 4. Learned Counsel appearing on behalf of the appellant submits that the Gas Cylinders were impo....

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....f Industrial Plant under Project Imports Regulations, 1986 means a Industrial system designed to be employed directly in the performance of any process or series of processes necessary for manufacture, production or extraction of a commodity. He submits that as Gas Cylinders are not used for manufacture of production or extraction of commodity, therefore, they cannot be covered under the definition of Industrial Plant. He, therefore, prays that the appeal be dismissed. 6. Heard both sides. 7. In this case the benefit of Project Import was denied to the empty Gas Cylinders imported by the appellant. The appellants were setting up a Gas Plant and this fact was not disputed by the Revenue. The Tariff Heading 98.01 of the Customs Tariff p....

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....f provides uniform rate of duty to the auxiliary equipment required for the initial setting up of the Industrial plant. The Tribunal in the case of Collector of Customs, Cochin v. West Coast Indl. Gases Ltd., reported in 1989 (25) ECR 225 (CEGAT SB-B2) held that the Gas Cylinder is the auxiliary equipment in the manufacture of Gas. The Tribunal held as under : 'The next question is if they are not plant, can they be considered as "auxiliary equipment" under T.I. 84.66. Admittedly the gas manufactured has to be stored in containers and the containers can be either a storage tank or cylinders and by means of containers or by means of a pipeline it can be supplied to consumers. The pipeline can be constructed either by the supplier of gas o....