Project exemption under Notification 108/95-C.E. turns on actual supply for the eligible project, not name in the certificate.

A beneficial exemption under Notification No. 108/95-C.E. applies where goods are supplied for projects approved by the Government of India and financed by the World Bank or Asian Development Bank, even if the project implementation certificate is issued in the contractor's name rather than the supplier's. The decisive factor is the actual supply and use of the goods in the eligible project; where that factual use is undisputed and there is no material showing diversion outside the project, the absence of the supplier's name is not fatal. The exemption was therefore treated as available on the object of the notification, not a restrictive reading.

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Issues: Whether the appellant was entitled to exemption under Notification No. 108/95-C.E. when the project implementation certificate was issued in the contractor's name and not in the appellant's name.

Analysis: The goods were cleared against project implementation certificates duly countersigned by the State authority and were admittedly used in projects financed by the World Bank and the Asian Development Bank in the earthquake-affected area. The notification grants exemption to goods supplied to such projects approved by the Government of India, and the decisive requirement is that the goods be supplied for the project. The absence of the appellant's name in the certificate, by itself, was not treated as fatal where the factual use of the goods in the eligible project was undisputed and no contrary material showed diversion or use outside the project. A beneficial exemption notification was therefore read in a manner consistent with its object rather than restrictively.

Conclusion: The appellant was entitled to the benefit of Notification No. 108/95-C.E.; denial of exemption was unsustainable.

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