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2015 (9) TMI 242 - AT - CustomsRevocation of Project Import Contract Substantial Expansion Non-fulfilment Appellant registered contract with Customs Authorities and made imports of machinery Vide order of Deputy Commissioner of Customs, Project Import Contract were deregistered and goods imported were assessed on merits and differential duty demand was made Reason for denial of project import benefit was that appellants overall production capacity had not increased substantially to make it eligible for concession Tribunal vide impugned order remanded matter back to authority for afresh consideration Whether imported goods were for expansion of capacity to produce HTSLR wires Held that:- If unit per se was not eligible for grant of benefit, it will not make any difference whether benefit was under category of substantial expansion or under category of initial setting up of unit There was no setting up of new stranded wire unit at all Only as part of existing plant for manufacture of wires including stranded wires, additional machinery were installed for making different type of stranded wires and overall capacity was maintained at existing level by allowing appellant to dismantle old machinery Certificate of project benefit recommended by DGTD was for substantial expansion of plant, inasmuch as capacity of plant remained same both before as well as after expansion, condition for availing benefit of project imports was not satisfied Appellant did not have any capacity to manufacture HTSLR wires prior to 1993 and therefore, import of machinery to manufacture said wires, cannot be said to be substantial expansion for purposes of Project Import Regulations Appellant has not satisfied condition of substantial expansion of existing installed capacity so as to be eligible for benefit of Project Imports As per majority view Appellant was not eligible for benefit of Project Imports Appeal dismissed Decided against Assesse.
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