Assessment of construction equipment under Project Imports Regulations - CBEC Clarifies
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).
In the case of Commissioner of Customs, Mumbai vs. M/s. Toyo Engineering India Ltd.- (), 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.”
The Board now clarifies 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.
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.
CBEC Circular No. 49/2011-Customs, dated: 04 November 2011