Law: Customs Act, 1969

Section: 19

Customs Act (IV of 1969)---S.19---S.R.O. 484(I)/92 dated 14-5-1992---Exemption from customs duty---Objectives---Plant and machinery---Dump trucks imported by cement manufacturer and supplier are component parts of the industrial process and fall within the purview of "plant and machinery" as contemplated in S.R.O. 484(I)/92, dated 14-5-1992---Expression "installed" does not necessarily mean fixed in position but it is also used in the sense of inducted or introduced and also means to place an apparatus in position for service or use---Concession under the said notification is extended to the mobile machinery imported by cement industry for excavation/transportation of rocks from leased area to the factory--- Concessions/exemptions in tax matters are generally granted with intention of boosting the industrialization, manufacturing business and trade activities and while interpreting such notifications such intention has to be kept in view---Principles. In the present case the appellant has set up a pant for manufacturing of cement and when the Tribunal has conceded that certain goods have been imported which are meant for setting up of a new unit or expansion, balancing or modernization, it means, that the imported goods are component parts of the industrial process. It goes without saying, that when a new unit is set up then expansion, balancing or modernization of the existing unit is carried out by addition to the plant and machinery and not otherwise. If any thing is raw material, or stock in trade or is not connected with the existing plant or machinery it would not expand or modernize the existing industrial unit. Thus it is contradictory in terms to say, on one hand that the imported goods are meant for setting up of a new unit or for expansion, balancing or modernization and on the other hand, it is contended that it is not a part of industrial unit or is not used in the industrial process when the Tribunal has said that the Condition No. 1, to the effect that it is not locally manufactured is not disputed then it has to be conceded that it is a plant and machinery, because in the said notification it is contained that the Federal Government is pleased…

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