TMI Blog2002 (12) TMI 522X X X X Extracts X X X X X X X X Extracts X X X X ..... 986. 2. The appellant was granted a letter of Intent by the Government of India on 16-1-84 to put up a natural gas based fertilizer plant. In order to erect the manufacturing unit, the appellant had to import plant and machinery from abroad. Import of such items of machinery was covered by Chapter 98, Heading 98.01 of the First Schedule to the Customs Tariff Act, 1975. The assessment and clearance of the items of machinery were governed by the Project Imports Regulations, 1986 framed under Section 157 of the Customs Act, 1962. 3. After commissioning of the first plant the appellant undertook an expansion project titled as Gadepan-II Fertilizer Plant. One of the equipments required for Gadepan-II Project was 120-AC 395 Demag Crane which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated 2-2-99, 4-3-99 and 31-3-99. The Assistant Commissioner of Customs issued show cause notice on 28-9-99 requiring the appellant to show cause as to why the subject crane be not classified under Customs Tariff Heading 8426.41 and further amount 63,69,482/- be not recovered from the appellant. Appellant replied putting forth his case that crane would come under Chapter Heading 98.01 and be entitled to duty exemption. Reliance was also placed on the letter dated 21-4-98 issued by the Ministry of Chemicals Fertilizers addressed to the Collector of Customs, Group-V Mumbai referring to list of goods required for the appellant s Gadepan-II Project and directing that the goods covered by the same list be exempt from Customs duty on import. One ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the Commissioner (Appeals) under order dated 11-6-2002 which is being challenged in the present appeal before us. 7. It is contended on behalf of the appellant that the original authority as well as the appellate authority have committed grave error in not considering the appellant s case in the light of the direction given by this Tribunal in its order dated 18-4-2001. The learned counsel for the appellant would contend that instead of considering the appellant s case in the light of Toyo Engineering Ltd., reported in 2000 (122) E.L.T. 315 the original authority has proceeded on the basis that Toyo Engineering Ltd., has been wrongly decided by the Tribunal in the light of the decision of the Supreme Court in Punjab Electricity Board v. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ustrial plant as it is designed to be employed directly in the performance of processes necessary for manufacture of fertilizer. Once the fertilizer plant is covered by the term Industrial plants specified in Heading 98.01 of Customs Tariff Act, 1975 all auxiliary equipments which are required for the initial setting up of the unit can be imported under the Project Import Scheme. While coming to the above conclusion the Tribunal observed as follows :- 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te and restricted the term to those equipments which have direct use in the setting up of the project. 11. In National Aluminium Company v. C.C. - 1997 (94) E.L.T. 409 the ratio of the decision of the Supreme Court in Punjab State Electricity Board case was discussed and it was observed that the Supreme Court took the view that those vehicles would not be eligible for the benefit of Project Import as they were not considered to be an item of auxiliary equipment required for initial setting up of a unit in a specified power project for the reason that it was used for shifting transformer which would not constitute an integral part of the Power Project. This observation in the case of National Aluminium Company v. CC is also referred and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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