M/S. K.R. STEEL UNION LTD. vs COMNR. OF CUSTOMS KANDLA(GUJARAT)

The Supreme Court upheld the decision of the Collector of Customs regarding the import of machinery by the appellant, an approved unit in the Kandla Free Trade Zone, under Notification No. 77/90-Cus. The Court found that the Thyristor Converter, although new, constituted only 9% of the total value of the Temper Mill and was essential for its operation, while the ceramic wool was deemed a replaceable part that did not alter the classification of the machinery as second-hand. The Court concluded that the imports complied with the conditions of the import license and were used for export production, thus dismissing the appeal against the Tribunal's order.