Project import benefit for drinking water supply projects was referred to a Larger Bench on the scope of eligible components.

Project import benefit under the Project Import Regulations, 1986 for drinking water supply projects was examined in relation to Entry No. 26 of Notification No. 42/96-Cus., specifically whether the benefit is confined to water treatment plants or also covers pipes and equipment used for sourcing, transmission, storage and distribution. The scope of the exemption for such project components remained unresolved at this stage, and the issue was referred to a Larger Bench for determination.

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Issues: Whether the project import benefit under the Project Import Regulations, 1986 for drinking water supply projects under Entry No. 26 of Notification No. 42/96-Cus. is confined only to water treatment plants, or whether it also extends to pipes and equipment used for bringing water from the source, transmission, storage and distribution in a drinking water supply project.

Outcome: The matter was not finally decided and was referred to a Larger Bench for resolution of the scope of the project import benefit.

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