PARADEEP PHOSPHATES LTD Vs. COLLECTOR OF CUSTOMS

JUDGEMENT

(1.) A contract dated 23 -1 -1989 executed between M/s. Paradeep Phosphates Ltd., Paradeep and M/s. Buhler Brothers Ltd., Switzerland for importing "Mobile continuous Ship Unloader Completely Assembled" was registered on 16 -1 -1992 at Paradeep Customs House under Project Imports Regulations, 1986. The goods were imported and assessed provisionally to duty under heading 9801.00 and cleared on 27 -1 -1992.

(2.) SUBSEQUENTLY , the Customs House initiated proceedings against the Importer on the grounds of short levy of duty owing to erroneous assessment under Project Import. The department felt that ship unloader was not an integral port of the project for manufacture of fertilizer and only used for speedy unloading of solid raw materials from ship.

(3.) THE Assistant Commissioner of Customs, Paradeep in his order dated 2 -12 -1992 rejected the contention of the party that the unloader is a transmission equipment for transmitting raw materials and this fits into heading 9801.00. He observed that project had been registered for setting up a Phosphatic Fertilizer Plant and a ship unloader removing raw materials from a ship and loading it onto a belt and operating from within the port area cannot be called machinery for initial setting up of a unit to manufacture fertilizer. The unloader is not at all involved in the manufacture of fertilizer, nor is it an equipment used in the construction of a fertilizer project. He accordingly finalised the provisional assessment of the imported goods by classifying them under Heading 8428.39 and confirming a duty of Rs. 10,2743,769/ - on the importer.