Road construction exemption under Notification No. 21/2002 applied where the contractor satisfied Condition No. 40.

Exemption under Notification No. 21/2002 was available where the goods were required for road construction and the claimant satisfied Condition No. 40. A purchase order issued by a State road development corporation for road-related work was treated as a contract awarded for construction work, bringing the appellants within clause (a)(ii) as persons awarded such a contract by a corporation under State Government control. The State Government clarification supported the appellants' bona fides and their role in executing the work. The exemption was therefore not deniable, and consequential relief followed.

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Issues: Whether the appellants were entitled to exemption under Notification No. 21/2002 by satisfying Condition No. 40, including eligibility under clause (a)(ii) as a person awarded a contract for road construction.

Analysis: The purchase order issued by the Tamil Nadu Road Development Corporation for road-related work constituted a contract awarded to the appellants for construction work. The exemption notification covered goods required for construction of roads, and clause (a)(ii) of Condition No. 40 extended the benefit to a person awarded a contract by a road construction corporation under the control of a State Government. The clarification issued by the State Government also supported the appellants' bona fides and their role in undertaking the work for the corporation.

Conclusion: The appellants satisfied the relevant condition in the notification and the exemption could not be denied; the appeal succeeded with consequential relief.

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