Customs exemption for asphalt mixing plant upheld where importer formed part of the BOT road-project contract chain

Imported asphalt mixing plant qualified for exemption under Sl. No. 230 of Notification No. 21/2002-Cus. because the road project was executed within a BOT concession structure in which the special purpose vehicle held the contractual rights and had awarded the EPC work to the importer. On the record, the importer was not a mere outsider to the contractual chain, so the precedent involving a different project structure did not apply. Following an earlier decision on an identical import, the exemption was available and the impugned order was set aside.

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Issues: Whether the imported asphalt mixing plant was eligible for exemption under Sl. No. 230 of Notification No. 21/2002-Cus. as goods imported for a road project by a person duly covered by the contract structure involving the concessionaire and the sub-contractor.

Analysis: The project was undertaken on a Build-Operate-Transfer basis under a concession agreement between NHAI and CIDBI, with STPL constituted as the Special Purpose Vehicle and vested with the rights and obligations under the assignment agreement. The appellant entered into an EPC contract with STPL, and the record, including the NHAI letter, showed that STPL had awarded the contract to the appellant for execution of the roadworks. In these circumstances, the appellant could not be treated as a mere sub-contractor outside the contractual chain; the reliance on the precedent concerning a different contractual structure was held inapplicable. Following the earlier decision on an identical import, the benefit of the notification was held to be available.

Conclusion: The imported machine was held eligible for exemption under Sl. No. 230 of Notification No. 21/2002-Cus., the impugned order was set aside, and the appeal succeeded in favour of the assessee.

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