Project import concession denied where contract registration before clearance was mandatory and post-import inclusion could not cure the defect.

Project import classification under Heading 84.66 was unavailable because the goods were not covered by a specific contract registered with Customs before clearance. The mandatory registration requirement under the project import regulations was treated as a condition precedent, not a formality, and later inclusion of the diesel generating sets after importation could not create eligibility. Applying strict construction of fiscal exemptions, the Tribunal held that the importer had not satisfied the statutory conditions for concessional assessment. The refund claim based on project import benefit was therefore not maintainable.

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Issues: Whether the benefit of project import classification under Heading 84.66 was available when the contract covering the disputed goods had not been registered before clearance and the later request for inclusion of the goods was made only after importation.

Analysis: Project import treatment was held to be available only when the imported goods were covered by a specific contract duly registered with the Customs before clearance, in accordance with the project import regulations framed under Section 157 of the Customs Act, 1962. The registration requirement was treated as a mandatory condition precedent and not a mere formality. Since the two diesel generating sets were imported and cleared outside the original registered contract, and the attempt to include them later was an afterthought, post facto inclusion could not confer the concessional tariff benefit. The Tribunal also applied the principle that exemption provisions in fiscal law must be strictly construed and that the importer must squarely satisfy the statutory conditions.

Conclusion: The disputed goods were not eligible for assessment under Heading 84.66, and the refund claim based on project import benefit was not maintainable.

Ratio Decidendi: For project import concessions, prior registration of the specific import contract before clearance is a mandatory condition precedent, and fiscal exemptions must be strictly construed.

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