Exemption for supplies to World Bank-financed projects extends to IDA-backed cement supplies under Notification No. 108/95-CE.

Notification No. 108/95-CE exempts goods supplied to projects approved by the Government of India and financed by the World Bank or another international organisation. On the stated facts, cement supplies made to a Government-approved project financed by the International Development Association satisfied these conditions because the IDA was treated as part of the World Bank framework. Prior Tribunal decisions had already accepted that supplies to IDA-financed projects fall within the notification. The effect is that such supplies qualify for exemption under the notification.

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Issues: Whether the benefit of Notification No. 108/95-CE was available to supplies of cement made to a project approved by the Government of India and financed by the International Development Association.

Analysis: The exemption covered goods supplied to projects approved by the Government of India and financed by the World Bank or any other international organization. The project in question was admittedly approved by the Government of India and financed by the International Development Association, which was treated as a constituent of the World Bank. The issue was already settled by prior Tribunal decisions holding that supplies to projects financed by the International Development Association satisfy the notification conditions and qualify for exemption.

Conclusion: The exemption under Notification No. 108/95-CE was available to the assessee.

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