World Bank exemption applied to supplies for International Development Association financed projects under the notification.

Goods supplied to a project financed by the International Development Association were treated as eligible for exemption under Notification No. 108/95-C.E. because the International Development Association was regarded as part of the World Bank for the purpose of the notification. The Tribunal noted that the notification covered supplies to projects financed by the World Bank, subject to the prescribed certification, and found the omission of the International Development Association from the annexure to the United Nations (Privileges and Immunities) Act, 1947 to be irrelevant to that exemption. Earlier Tribunal rulings supporting the same treatment were also relied on, and the Department's appeal failed.

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Issues: Whether goods supplied to a project financed by the International Development Association were eligible for exemption under Notification No. 108/95-C.E. as supplies to a project financed by the World Bank.

Analysis: The notification granted exemption to goods supplied to the World Bank, the Asian Development Bank, or other international organisations in the specified category, subject to the prescribed certification. The material placed before the Tribunal showed that the World Bank functions through distinct wings, including the International Development Association and the International Bank for Reconstruction and Development. On that basis, the International Development Association was treated as part of the World Bank. The non-mention of the International Development Association in the annexure to the United Nations (Privileges and Immunities) Act, 1947 was held to be irrelevant for the exemption claimed under the notification, because the relevant clause specifically covered supplies to projects financed by the World Bank. Earlier Tribunal decisions supporting exemption for supplies to projects financed by the International Development Association were also noted.

Conclusion: Supplies to projects financed by the International Development Association were held eligible for exemption under Notification No. 108/95-C.E. as supplies to a project financed by the World Bank, and the Department's appeal failed.

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