Project import assessment can coexist with an exemption notification where the governing provision preserves other relief.

Project import assessment under Heading 9801 did not exclude the operation of another applicable exemption notification where the governing notification preserved such exemption. The Tribunal accepted that Notification No. 86/88 remained available for the abrasion testing machine, accessories and spares imported for an industrial plant, and found no infirmity in the order of the Commissioner (Appeals), which had followed earlier decisions on the same issue. The exemption benefit was upheld and the Revenue's challenge failed.

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Issues: Whether the respondents were entitled to the benefit of Notification No. 86/88 for the abrasion testing machine with accessories and spares imported for an industrial plant under project import assessment, and whether the Revenue's appeal against the order allowing such benefit deserved to be accepted.

Analysis: The Tribunal noted that the Commissioner (Appeals) had allowed the benefit of the notification and had relied on earlier decisions on the same question. It also took note of the submission that the governing notification for assessment under Heading 9801 contained a saving clause preserving exemption under other notifications in force. On the facts placed before it, the Tribunal found no infirmity in the appellate order and agreed with the conclusion reached by the Commissioner (Appeals).

Conclusion: The benefit of the notification was upheld and the Revenue's challenge failed.

Final Conclusion: The appellate order granting the exemption benefit was affirmed, resulting in rejection of the Revenue's appeal.

Ratio Decidendi: A project import assessment does not exclude the operation of another applicable exemption notification where the governing notification preserves such exemption.

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