Refund of duty benefits under World Bank project exemption held admissible on merits after delayed funding

Refund of duty benefits reversed under Notification No. 108/95-CE was treated as admissible on merits where goods were procured for a World Bank-funded project and the funding was received later. The Tribunal followed its earlier consistent view in similar matters and its prior decision in the same assessee's case, holding that the Revenue's challenge could not succeed. The refund claim was therefore allowed, with consequential relief to the assessee.

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Issues: Whether refund of duty benefits reversed by the assessee under Notification No. 108/95-CE was admissible on merits where World Bank funding was received later.

Analysis: The assessee had availed exemption for goods procured for a World Bank-funded project and later deposited the duty benefits when funding was delayed. The claim for refund was earlier examined in similar matters and the Tribunal had already rejected the Revenue's challenge in those cases. Following that consistent view and its own earlier decision in the assessee's case, the Tribunal held that the denial on merits could not stand.

Conclusion: The refund claim was held admissible and the appeal was allowed with consequential relief to the assessee.

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