Customs duty exemption for named project sub-contractors upheld where the agreement expressly identified the importer.

Customs duty exemption under Notification No. 21/2002-Cus. was available where goods were imported by NHAI or by a person expressly named as a sub-contractor in the relevant project agreement. The amended concession agreement validly identified M/s. PLL as the EPC sub-contract for the project, satisfying the notification condition for a named sub-contractor. On that basis, the importer met the eligibility requirement and the denial of exemption was not justified.

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Issues: Whether the importer was entitled to customs duty exemption under Notification No. 21/2002-Cus. dated 01.03.2002 as a person named as sub-contractor in the relevant project agreement.

Analysis: The notification benefit depended on the goods being imported by NHAI or by a person specifically named as a sub-contractor in the contract between NHAI and the contractor. The concession agreement, as amended, expressly identified M/s. PLL as the EPC sub-contract for the project, and the amendment was held to be valid and effective under the agreement. On that basis, the importer satisfied the condition of being the named sub-contractor for implementing the project, and the denial of exemption was not justified.

Conclusion: The importer was entitled to the exemption under the notification.

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