Mega power project exemption applies to suppliers of project goods, not only the project bidder, under Notification No. 6/2006-CE.

Notification No. 6/2006-CE grants exemption to goods meant for use in a mega power project, and the decisive condition is that the goods are supplied towards the project. The exemption is not restricted to the person who undertakes the project through international competitive bidding, because Sl. No. 91 read with condition No. 19 does not add such a supplier-specific requirement. On that interpretation, the supplier of the project goods was entitled to the exemption.

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Issues: Whether duty exemption under Notification No. 6/2006-CE dated 01.03.2006 is available to the supplier of goods used in a mega power project, or only to the person undertaking the project through the international competitive bidding process.

Analysis: The exemption notification, particularly Sl. No. 91 read with condition No. 19, grants relief to goods meant for use in the mega power project and not to any particular person. The decisive requirement is that the goods are supplied towards the project; there is no further condition that the supplier must itself be the bidder. The interpretation was reinforced by the cited High Court view that the condition for exemption is supply of goods towards the project and nothing beyond.

Conclusion: The exemption was available to the appellant as supplier of the goods meant for use in the project, and the appeals were allowed.

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