Commissioner Of Customs, Mumbai vs M/S. Toyo Engineering India Limited

The Supreme Court upheld the Tribunal's decision that the machinery imported by the respondent was classifiable under Heading 98.01 of the Customs Tariff Act, 1975, granting the benefit of Project Import. The Court found that the lower authorities' reasoning, which denied the classification based on the ownership and potential reuse of the machinery, was not sustainable. The Court clarified that the classification under Heading 98.01 applies to machinery required for the initial setting up or substantial expansion of a unit, regardless of subsequent ownership.