COMMISSIONER OF CUSTOMS, MUMBAI versus MIS. TOYO ENGINEERING INDIA LIMITED

COMMISSIONER OF CUSTOMS, MUMBAI versus MIS. TOYO ENGINEERING INDIA LIMITED

Auxiliary equipment imported for the initial setting up of an industrial plant is covered by Heading 98.01 of the Customs Tariff Act, 1975, and qualifies for Project Import benefit. Ownership or subsequent use does not affect eligibility provided initial utilization for the project is established.

Parties
Appellant: Commissioner of Customs, Mumbai; Respondent: M/s. Toyo Engineering India Limited
Jurisdiction
India
Judgment Date
31 August 2006
Procedural Posture
Civil Appeal / Final Appeal Against Tribunal Order
Outcome
Appeal dismissed
Legal Topics
Classification Under Customs Tariff Act, Project Import Scheme, Auxiliary Equipment Definition
Customs Law Classification Under Customs Tariff Act Project Import Scheme Auxiliary Equipment Definition

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Parties

Commissioner of Customs, Mumbai

Appellant

M/s. Toyo Engineering India Limited

Respondent

Procedural Posture

Civil Appeal / Final Appeal Against Tribunal Order

Legal Issues

  1. 1 Whether auxiliary equipment imported for initial setting up of an industrial plant qualifies under Heading 98.01 of the Customs Tariff Act, 1975 for Project Import benefit
  2. 2 Whether mere possibility of subsequent use elsewhere disqualifies imported auxiliary equipment from Project Import Scheme

Ratio Decidendi

Auxiliary equipment imported for the initial setting up of an industrial plant is covered by Heading 98.01 of the Customs Tariff Act, 1975, and qualifies for Project Import benefit. Ownership or subsequent use does not affect eligibility provided initial utilization for the project is established.

Court Disposition

Appeal dismissed

Orders

  • Respondent entitled to the Project Import benefit under Heading 98.01 of Customs Tariff Act, 1975.
  • Parties to bear their own costs.