Case Law Details
Jai Balaji Industries Limited Vs Commissioner of Customs (Port) (CESTAT Kolkata)
Held that refractory bricks required for re-lining of the furnace are covered within the definition of capital goods and hence eligible for EPCG scheme as per notification no. 102/2009- Cus dated 11.09.2009
Facts-
The Appellants use refractory bricks/materials for lining the furnaces. A refractory brick is designed mainly to withstand high heat, but also has a low thermal conductivity to save energy. Accordingly, the Appellants imported several sets of refractory materials/bricks for relining and also for maintenance purposes for the ARC furnace and the 60MT ladle furnace. The refractory materials were imported under the EPCG scheme covered by Chapter 5 of the Foreign Trade Policy (FTP) read with notification no. 102/2009- Cus dated 11.09.2009 and 103/2009-Cus also dated 11-09-2009.
As per the department, the definition of “Capital Goods” included only those refractory bricks/materials which were required for the initial lining of the furnace. Hence, the refractory bricks used for relining or maintenance of the furnace were not covered by the definition of ‘Capital Goods’ and hence, not eligible for exemption from duty under the EPCG scheme.
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