2006 (1) TMI 345 - AT - Customs

Sub-contractor in Joint Venture entitled to Customs Benefit under Notification No. 17/01-Cus

The Tribunal held that the appellant, as a sub-contractor in a joint venture for road construction, is entitled to the benefit under Notification No. ... Joint venture - Person - Exemption Issues Involved:The issue involves the entitlement of the appellant to the benefit of Notification No. 17/01-Cus., dated 1-3-2001, in a case where a joint venture company was awarded a contract for road construction by the National Highway Authority of India, and whether the appellant, as a sub-contractor, should also receive the benefit under the Notification.Summary:Issue 1: Entitlement to Benefit of Notification No. 17/01-Cus.The appellant challenged the Order-in-Appeal No. 132/2003, which held that the appellant was not entitled to the benefit of the Notification due to the contract being awarded to a joint venture company. The appellant contended that they should be treated as sub-contractors and thus entitled to the benefit under the Notification.Judgment:The Tribunal considered the ruling in IVRCL Infrastructure & Projects Limited v. CC, Chennai, which established that a joint venture is a legal entity akin to a partnership, allowing any partner to transact with the department. The Tribunal held that the benefit of the Notification should not be denied in a manner that defeats its purpose. Applying this precedent, the Tribunal found that the appellant, named as a sub-contractor in the joint venture agreement for road construction, should be considered eligible for the benefit under the Notification.Outcome:The Tribunal concluded that the appellant, as part of the joint venture agreement for road construction, should be treated as a person entitled to the benefit under the Notification. The impugned order was set aside, and the appeal was allowed with any consequential relief deemed necessary.