M/S.SHRIRAM VINYL & CHEMICAL INDS. vs COMMNR.OF CUSTOMS, MUMBAI — C.A. No. 3940/1998

The Supreme Court allowed Shriram Vinyl & Chemical Industries' appeal and set aside the Tribunal's order denying customs duty exemption. The Court held that Notification No.155/86-Cus covers "assembly" as a separate activity from "initial setting up" and does not require creation of an entirely new article; reusing serviceable parts from dismantled furnaces alongside imported and indigenous parts qualifies for the exemption benefit. The Court rejected the interpretation that modernization and assembly are identical, finding the notification's language clear and its benefit should not be denied merely because certain old parts were reused. This case analysis is maintained by casestatus.in based on publicly available court records.