Project exemption under Notification 108/95-C.E. requires supply to the project itself, not merely use by a contractor.

Exemption under Notification No. 108/95-C.E. is available only where goods are supplied to the approved project itself and are required for its execution. Goods purchased in a contractor's own name and retained under the contractor's ownership and control do not satisfy that condition, even if they are used in project work. A prior decision was distinguished because those facts involved undisputed supply to the project. On this basis, and also for want of shown financial hardship, no waiver of pre-deposit or stay relief was warranted; the stay application was rejected.

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Issues: Whether the appellants had made out a prima facie case and grounds for waiver of pre-deposit by claiming exemption under Notification No. 108/95-C.E. for goods allegedly used in a project financed by an international organization.

Analysis: The exemption under Notification No. 108/95-C.E. was held to be available only when the goods are supplied to the project itself and are required for execution of the approved project. Goods purchased in the contractor's own name and remaining under the contractor's ownership and control cannot be treated as goods supplied to the project, even if they are used in project work. The earlier decision relied upon by the appellants was distinguished on the ground that, in those cases, there was no dispute that the goods were supplied to the project. The appellants also failed to show financial hardship.

Conclusion: The appellants were not entitled to stay or waiver of the duty pre-deposit, and the stay application was rejected.

Final Conclusion: The order proceeds on the basis that exemption-related relief requires supply of goods to the project with project control, and on that footing no interim relief was warranted.

Ratio Decidendi: For exemption under Notification No. 108/95-C.E., the goods must be shown to have been supplied to the project and to be under project control; goods supplied to a contractor in his own name do not satisfy that requirement.

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