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2015 (10) TMI 2082 - CESTAT CHENNAI

2015 (10) TMI 2082 - CESTAT CHENNAI - 2016 (333) E.L.T. 360 (Tri. - Chennai) - Clearance of goods under Status Holder Incentive Scheme Benefit of Notification No. 104/2009 Appellants imported titanium sheets for clearance under Status Holder Incentive Scheme (SHIS) claiming benefit of Notification No. 104/2009 Adjudicating authority denied benefit of notification on ground that titanium sheets are not capital goods but confirmed amount under section 28(2) of Customs Act, 1962 Commissione .....

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es 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 Assesse. - C/57/2011, C/41483/2013 - Final Order No. 40672-40673 / 2015 - Dated:- 12-6-2015 - Shri R. Periasami, Techn .....

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titanium sheets for clearance under Status Holder Incentive Scheme (SHIS) claiming benefit of Notification No. 104/2009 dated 14.9.2009. The adjudicating authority denied the benefit of notification on the ground that titanium sheets are not capital goods. On appeal, Commissioner (Appeals) upheld the order. 3. In appeal No. C/41438/2013, filed by Revenue, the issue are identical but relating to subsequent imports of same item, where the adjudicating authority denied the exemption Notification N .....

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tor. 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 l .....

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nder EPCG scheme. He produced copy of the licence were among the list of items titanium sheets are specifically included under the capital goods. Once the goods are allowed in one scheme as capital goods the same cannot be denied for SHIS scheme. Once the licensing authority has allowed the goods under capital goods customs authorities cannot question the licensing authority and deny the benefit. He also submits that the Commissioner (Appeals) in their own case for subsequent period has allowed .....

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eme is intended for import of capital goods only for upgradation. The titanium sheets 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 sect .....

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s denied the benefit whereas for the subsequent period the lower appellate authority had allowed the benefit and held that they are capital goods. We find that the definitions of capital goods given in Explanation to the Notification No.104/2009 is reproduced as under:- Capital goods means any plant, machinery, equipment or accessories required for manufacture or production, either directly or indirectly, of goods or for rendering services, including those required for replacement, modernization .....

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l as for use in services sector. We also find that the definition of capital goods mentioned in para 9.12 of FTP is identical to the above definition. 8. We also find that the licensing authority had issued EPCG licenses to the appellant for import of said product. On perusal of the copy of the EPCG license No. 0930004208 dated 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 .....

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are directly used as parts of lining material in the reactor. The definition of capital goods widely includes plant, machinery, equipment, accessories. 11. In the present case it is evident that titanium sheets are specifically used as lining material for fabricating the reactors. There is no dispute on the fact that the appellant is the actual user and the imported goods are used in the chemical industry. These goods are also allowed to the importers under EPCG license. Further, we find that i .....

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