Interim relief and project import concession were refused where final entitlement remained pending before a Larger Bench.

Entitlement to Project Import concession for drinking water supply projects was pending final determination before a Larger Bench, because conflicting views had already led to a reference under the Project Import Regulations, 1986. The Bench held that an earlier favourable view had not attained finality and that an interim order should not be made where it would effectively grant the substantive fiscal relief sought before authoritative resolution of the issue. Interim relief directing Project Import Registration and duty-free clearance was therefore refused.

---

---

Issues: Whether interim relief directing grant of Project Import Registration and clearance of the imported goods without payment of duty could be granted pending decision by the Larger Bench on entitlement to Project Import concession for drinking water supply projects.

Analysis: The dispute had already been referred to the Larger Bench because two views existed on the scope of the Project Import benefit under Sl. No. 26 of the Project Import Regulations, 1986. The Bench held that its earlier view in favour of the applicants had not attained finality, since the contrary view in another decision had necessitated reference to the Larger Bench and the President had constituted that Bench. In these circumstances, it was not proper to grant an interim order that would effectively confer the substantive relief sought, particularly when the issue remained pending authoritative determination.

Conclusion: Interim relief was not granted and the request was rejected.

Ratio Decidendi: Where the very entitlement to the substantive fiscal concession is pending final determination before a Larger Bench, an interim order should not be passed if it would in substance grant the final relief sought.

---