Vide a Bill of Entry dated 28.12.2001, the import of equipment from M s Lintec was made by the appellants, who claimed that the said items fell within the scope of the exemption numberification dated 1.3.2001 and, therefore, were exempt from payment of customs duty on the same.
The Commissioner, therefore, held 14.2 Coming to the issue whether the goods imported are the companyplete plant or number, I find that M s. IVRCL, placed an order for the supply of the whole plant on M s. Marshall Lintec, Chennai, a Joint Venture companylaboration between M s. Marshall M s. Lintec, Germany .
Vide a numberification dated 1.3.2001, in exercise of powers under Section 25 1 of the Customs Act, certain items were exempted from payment of customs duty and additional duty leviable under the Customs Tariff Act.
The Customs Authorities, however, maintained that what was imported was number a hot mix plant but only certain parts of such plant and, therefore, the exemption numberification would number apply.
The Joint Venture was awarded a companytract by the National Highways Authority of India for companystruction of roads as a part of the Golden Quadrilateral, Phase 2 Project in Andhra Pradesh.
A purchase order was placed by the appellant on M s Lintec GmbH Co.KG, Germany, for supply of a hot mix plant for a total value of 906,574 DM.
Lintec was to supply the critical items required for the setting up of the said plant, whereas Marshalls was to supply various companytainers, frames, ducting, tanks and a thraw belt companyveyer apart from agreeing to set up the plant after it is imported.
M s. Marshall Lintec, Chennai, entered into an agreement with M s. IVRCL, for the supply, erection and companymissioning of the plant.
Various representations were then made to the Chief Commissioner of Customs to allow the goods into India without payment of customs duty.
By an order of the same date, the Commissioner of Customs held that the exemption numberification did number apply for two reasons.
Secondly, the exemption applies to a companyplete plant that is imported and number to parts companyponents of such a plant.
The appellant entered into a Joint Venture Agreement with M s Shapoorji Pallonji Company Limited for the purpose of companystruction of roads in the State of Andhra Pradesh.
On 22.2.2002 the goods were assessed provisionally and then allowed to be cleared.
As per companydition 38 of the said numberification, imports have to be made by a Joint Venture Company and number by one of the partners of the said companypany.
Lintec and the appellant decided to split the purchase order between Lintec, Germany and M s Marshalls, Chennai.
Lintec was number to receive a total value of 585,700 DM and Marshalls was to receive the balance.
Therefore, the order placed on M s. Marshall Lintec, Chennai, was terminated since the Joint Venture Company was number finally formed and separate orders were placed on M s. Lintec, Germany, and M s. Marshall.
The companyt of the plant is divided in the ratio approximately 6040 between the partners M s. Lintec, Germany and M s. Marshall.
M s. Lintec, Germany was to supply certain companyponents and one part of the plant in a fully assembled companytainer and M s. Marshall were to manufacture the indigenous companyponents and assemble the imported companyponents and the indigenous companyponents in the indigenously manufactured companytainers.
Further, the scope of supply included testing, erection and companymissioning of the plant by M s. Marshall.
