Customs Circular No- 49/2011 dated 04.11.2011
Eligibility of assessment of construction equipments under Project Imports
Regulations (PIR), 1986 – Instructions - regarding.
References have been received that divergent practice are being followed by
field formations regarding assessment of import of construction equipments
required for the initial setting up of a unit, for a specified project under
Customs Tariff Heading No. 98 01 (Project Imports).
2. The issue has been examined by Board in view of decision of Hon’ble Supreme
Court in the case of Commissioner of Customs, Mumbai vs. M/s. Toyo Engineering
India Ltd., 2006(201) ELT 513 SC where in the it has been observed; “The goods
imported by the respondent such as hydle truck cranes, excavator, shovel loader,
truck, forklift truck, power generators, diesel welder, welding rectifier,
containers tools and tackles instruments, level Nako with tripod and theodlite
Nako with accessories & tripod would certainly be auxiliary equipments which
would help in the initial setting up of the industrial plant.” It is also
observed by Hon’ble Apex Court in Punjab Power State Electricity Board [1997(91)
ELT 247(SC), “that the vehicles, which are used in the shifting of the
transformers would not constitute integral activity of the project”.
3. In view of above said decisions it is clarified that the scope of the items
eligible for import under the Project Import Regulations 1986, shall cover
construction equipments as auxiliary equipment; if essentially required for
initial setting up or substantial expansion of registered projects.
4. Further it is clarified that the construction equipments may be permitted to
be transferred to other registered project under CTH 9801, after completion of
its intended use, on recommendations of sponsoring authority.
5. It is also clarified that ‘Plant Site Verification Certificate’ (PSVC)
required to be submitted for finalization of project as per Circular No.
14/2006-Cus F.No. 528/9/2006-Cus (TU) shall also incorporate the details of
construction equipments imported and used for the project, to ensure proper
utilization of goods imported.
6. These instructions should be brought to the notice of all the concerned by
way of issuance of instructions /trade notice.
7. Difficulty faced if any, may be brought to the notice of the Board.
F.No.528/14/2008-Cus (TU)
Yours faithfully,
(Alok Agarwal)
OSD (Tariff Unit)