CHAMBAL FERTILISERS & CHEMICALS Vs. CC (IMPORT)

JUDGEMENT

(1.) The issue raised in this appeal at the instance of the importer is whether they are entitled to claim exemption from Customs duty under Notification No. 11/97 dated 1.3.97 in respect of 120 MT AC -395 Demag Crane imported under Bill of Entry dated 13.8.98 under the provisions of the Project Import Regulations, 1986.

(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 was imported against invoice dated 30.6.98 and cleared under Bill of Entry dated 13.8.98. The appellant took the stand that the said crane would also enjoy zero duty benefit under Heading 98.01 which reads as follows: