Project Import benefit extends to testing machinery inputs needed for initial plant setup when licences and evidence support the claim.

Imported components and raw materials may qualify for Project Import benefit under Tariff Heading 84.66 where they are required for testing machinery and for completing the initial setting up of a plant. The benefit is available when the import is covered by the relevant licences and the factual claim that the goods were needed for project installation is not effectively rebutted. In the described matter, the industrial authority's certificate and the absence of contrary evidence supported acceptance of the claim, and fresh verification was declined because the issue had become old and remained unchallenged on the material record.

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Issues: Whether the imported components and raw materials were eligible for Project Import benefit under Tariff Heading 84.66 when they were claimed to be required for testing machinery and for completing the initial setting up of the plant.

Analysis: The import claim was examined in the context of the project not having reached complete initial set-up and of the goods being required for testing machinery rather than for a finished end-product. It was accepted that components and raw materials could fall within the project import benefit if they were necessary for setting up the plant and were covered by the import licences. The Revenue's request for fresh verification was declined because the matter was old, the specific factual claim had not been rebutted, and the lower appellate authority's reliance on the industrial authority's certificate was not shown to be unsupported by adequate contrary evidence.

Conclusion: The imported items were held to be eligible for the Project Import benefit under Tariff Heading 84.66, and the Revenue's appeal was rejected.

Ratio Decidendi: Components and raw materials imported for use in testing machinery that is necessary for completing the initial setting up of a project plant are permissible under Project Import benefits, particularly where the import is covered by the relevant licences and the factual claim is not effectively rebutted.

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