Per Lajja Ram:

This is an appeal filed by M/s. Steel Worth (P) Ltd. being aggrieved with the Order-in-Appeal dated 6.12.1985 of the Collector of Customs (Appeals), Calcutta.

2. The mater relates to the project import with regard to the importation of empty Nitrogen gas cylinders for the expansion of the already existing gas plant. The Asstt. Collector of Customs, Calcutta, rejected the application of the appellant for registration of the contract under the Project Import Regulations 1965 on the ground that the party had not produced die documents relating to the extension of the validity of the industrial licence for manufacturing the Nitrogen gas, project report, etc. It was observed by him that the plant for manufacturing Nitrogen gas had already been set-up and the commercial production had also started. The Collector of Customs (Appeals), Calcutta, rejected the appeal on the ground that the appellant had failed to make proper submissions to the satisfaction of the original side and that the appellant had not submitted the details of the project even at the appeal stage.

3. The matter was posted for hearing on 30.08.1995 when Shri B. Saha, ld. Advocate appeared for the appellant. Shri Somesh Arora, ld. JDR represented the respondent.

4. Shri B. Saha, ld. Advocate stated that earlier they had imported machinery under the project import and that the cylinders were in the nature of an equipment and were otherwise classifiable under Heading No. 84.66 of the Schedule to the Customs Tariff Act 1975. The ld. Advocate submitted that the orders passed by the Asstt. Collector, Customs, Calcutta, and the Collector of Customs (Appeals), Calcutta are not correct. The ld. Advocate referred to the decision of the appellate Collector of Customs, Bombay in the case of Modern Nets Ltd. -1980 (6) ELT 303 in which it has been stated that the provisions regarding the project import require that a prospective importer who seek registration of contract should possess a ITC licence and that the provisions did not envisages any endorsement of the ITC authorities on the licence as a pre-condition for such registration. Reliance was also placed on the Tribunal's decision in the case of Collector of Customs, Bombay Vs. BHEL-1984 (17) ELT525 (Tribunal) and the High Court of Calcutta judgement in the case of Asiastic Oxygen Ltd. Vs. Asstt. Collector of Customs -1992 (57) ELT 563 (Calcutta). Shri Somesh Arora, ld. JDR explained that the factory was at Bharat Pur in the name of North-east Gases Pvt. Ltd. while the import is in the name of a different company i.e. M/s. Steels Worth Pvt. Ltd. The appellant had not produced all the required documents before the lower authorities. They had not fulfilled the conditions stipulated for the project import and the contract was not registered as requisite documents were not received.,

5. In rejoinder, the ld. Advocate infirmed that the first factory was in Rajasthan and that it was shifted to the North-east in Assam.

6. We have carefully considered the matter. M/s. Steels Worth Pvt. Ltd. had applied for registration of their contract under the Project Importation (Registration of Contracts) Regulations Act 1965 for importation of empty Nitrogen Gas Cylinders. They stated that the empty Nitrogen Gas Cylinders were required for the initial setting-up of Nitrogen Gas Plant at Bongai Gaon, Assam. It is seen that the industrial licence had been issued in favour of M/s. Bharat Pur Oxygen Pvt. Ltd. for the manufacture of industrial gases on 16.K.76. On 24.9.82, the licence was endorsed in the name of M/s. North East Gases (Pvt.) Ltd., a wholly owned subsidiary of M/s. Steels Worth Pvt. Ltd., a joint family business concern of one Shri G.S. Agarwal and Shri D.P. Agarwal. With regard to their application for condonation of delay, it had been explained that after partition of family business on 1.1.95, M/s. North East Gases Pvt. Ltd came under G.S. Agarwal Group and M/s. Steel Worth Pvt. Ltd. came under D.P. Agarwal Group. Th