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2019-VIL-580-CESTAT-AHM-CU

CUSTOMS CESTAT Case

Customs – the appellant imported catalyst “Petromax-MD” for use in the production of other final product by claiming benefit of concessional rate of duty under notification 21/02-Cus dated 01/03/2002 - Adjudicating Authority denied the exemption on the ground that the goods in question is a catalyst and the same is not required for setting up of petroleum refinery and the exemption notification is not applicable - expression “required for setting up” - HELD - the criteria for the goods to be covered under this exemption notification is that the product should be used for setting up petroleum refinery and the goods should be used for running, repair and maintenance of plant - The goods imported is Petromax-HD which is a catalyst and the same is used in the manufacture of final product during the production process. Therefore, it is clear that the said good is not used for setting up of oil refinery - the use of goods for running, repair or maintenance of the goods specified in the list denotes that the same should be used in the setting up for crude petroleum refinery whereas the product “Petromax-MD” is not used for running, repair and maintenance of the plant. But it is used as input consumable in the production of final product. Therefore, the goods in question is not covered under entry no. 45 of List 17 of S. no. 228 of notification no. 21/2002-Cus - the lower authority has rightly denied the exemption - the impugned order is upheld and the appeal is dismissed

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