Nexus condition under credit certificate scheme cannot be added by departmental clarification; eligible machine import retained duty-free benefit.

Under the credit certificate scheme, duty-free import of eligible goods could not be denied by reading into the notification or certificate an additional nexus requirement between the imported machine and the services rendered. The governing instruments did not impose a negative-list restriction or any separate nexus condition, and a departmental clarification could not add a limitation absent from the scheme. On the facts, the machine was used in the appellant's service operations, and the adverse nexus finding rested on a misunderstanding of the appellant's communication. The import therefore remained entitled to the scheme benefit.

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Issues: Whether the imported machine had the requisite nexus with the services rendered so as to qualify for duty-free clearance under the credit certificate scheme, and whether a departmental clarification could impose an additional nexus condition not found in the notification or the certificate.

Analysis: The credit certificate and the governing exemption notification permitted import of eligible goods without a negative-list restriction and did not prescribe any separate nexus condition between the imported capital goods and the services rendered. The departmental clarification could not be used to read into the scheme a further limitation which was absent from the controlling instruments. On the facts, the machine was used in the appellant's service operations, and the finding of no nexus rested on a misunderstanding of the appellant's communication.

Conclusion: The nexus objection was unsustainable and the import was entitled to the benefit of the scheme.

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