COMMNR. OF CUSTOMS, MUMBAI vs M/S. TOYO ENGINEERING INDIA LTD.

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 in law. The Court emphasized that the classification under Heading 98.01 applies to all machinery required for the initial setting up of a unit, irrespective of future use.