TMI Blog2015 (10) TMI 2082X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant for import of said product – It is evident that list of items given in list include titanium sheets, titanium rod, titanium tube/pipe etc. under EPCG licence – No dispute on fact that appellant is actual user and imported goods are used in chemical industry – In respect of import of capital goods they are governed by FTP and once licensing authorities include any item as capital goods, same is to be allowed by customs – Therefore, lower authority in impugned order rightly held titanium sheets are capital goods covered under capital goods definition and same is eligible under SHIS scrip under Notification No. 104/2009 – Therefore, impugned titanium sheets imported under SHIS are eligible for exemption – Decided in favour of Assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... records. 5. Learned counsel representing the assessee submits that titanium sheets imported are used only as a lining material in their chemical reactor. Therefore, it is part of capital goods. The definition given under the Notification No. 104/2009 is an inclusive definition which covers capital goods, parts, accessories required for manufacture or production either directly or indirectly and it is inclusive definition covering refractories for lining and also for packing industry etc. He relied para 7 of the Order-in-Original where they have made submission before the adjudicating authority that titanium sheets are used exclusively as a lining material. He further submits that capital goods definition given in the notification and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is not capital goods and it cannot be used as parts of the capital goods. It has to be processed further and it can only be parts of parts of capital goods. Further, he submits that the in the Customs Tariff, the titanium sheets does not fall under any of the headings as capital goods in Chapter 84 or 85. The exemption is particularly related to SHIS with reference to import of capital goods to a specific sector. He relied on para 7.14 of the impugned order dated 27.1.2011. He relied on the decision of the Tribunal in the case of Sarvalakshmi Paper Board Vs. Collector of Customs, Madras 2000 (126) ELT 935. 7. After hearing both sides, we find that the limited issue in the present appeals is whether titanium sheets imported by the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted 21.7.2008 it is evident that the list of items given in the list include titanium sheets, titanium rod, titanium tube/pipe etc. under EPCG licence. 9. The assessees main contention is that once the licensing authority allows these goods under capital goods the Customs should not deny the benefit. Revenues main contention is that these goods are not capital goods per se. 10. As regards usage of titanium sheets, the appellant submitted that they are used in the fabrication of chemical reactor since calcium hydrochloride is highly corrosive in nature in order to protect the reactor titanium sheets are lined in the reactor. Therefore, we find that the imported goods are directly used as parts of lining material in the reactor. The def ..... X X X X Extracts X X X X X X X X Extracts X X X X
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