Exemption for power project supplies upheld on a prima facie basis, with no Project Import Regulations requirement for Indian-made goods.

Power cables supplied for Indian power projects against international competitive bidding were treated as prima facie eligible for exemption under Notification No. 6/2002-C.E. because the materials showed use in the specified projects and the condition of parity with imported goods appeared satisfied. The corresponding customs exemption requirement was considered met on the available record, supporting the appellant's claim for waiver of pre-deposit and stay of recovery pending appeal. Compliance with the Project Import Regulations, 1986 was held unnecessary for goods manufactured in India and supplied within India, as that regime applies to imported project goods.

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Issues: Whether the appellant was entitled to waiver of pre-deposit and stay of recovery on a prima facie showing that power cables supplied for power projects under international competitive bidding satisfied the exemption conditions, and whether registration under Project Import Regulations, 1986 was necessary for goods manufactured in India and supplied to domestic projects.

Analysis: The goods were supplied for power projects undertaken in India and certificates showed their use in those projects. The exemption under Notification No. 6/2002-C.E. applied to goods supplied against international competitive bidding, and the corresponding condition was that imported goods should also be eligible for exemption under the customs notification. On the materials placed, the condition of equal treatment between imported and indigenously manufactured goods appeared to be satisfied. The requirement of compliance with Project Import Regulations for imported project goods did not arise for goods manufactured in India and supplied within India.

Conclusion: The appellant established a prima facie case for exemption and was entitled to waiver of pre-deposit and stay of recovery pending disposal of the appeal.

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