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2018 (6) TMI 594 - AT - CustomsProject import - import of "Turbine" with its accessories for setting up of a Power Generation Project, as part of establishing a new sugar factory - denial of benefit on the ground of violation of import condition - case of appellant is that that though the imported goods were used to set up a power plant within the factory of the appellant, only a small percentage of the power was captively used and the bulk of the power was exported to the grid - Whether the imported turbines would be eligible for the benefit of N/N. 21/2002 for the concessional rate of duty under project import regulations? Held that:- The appellants are manufacturers of sugar and to meet the additional power requirement of the new sugar factory, they have decided to set up a power generation project. There is no dispute to the fact that the power plant has been installed at the sugar factory of M/S Kothari Sugars and is meant to supply power to the sugar manufacturing factory. As per the energy projects agreement with TNEB, the appellant is allowed to sell surplus power to TNEB. It is obvious that the power generation plant where the turbine has been used is set up in the appellant's sugar factory which cannot be considered as a power generation project - the appellant will not be eligible for the benefit of the notification. Appeal dismissed - decided against appellant.
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