Exemption for UNICEF-assisted projects upheld where purchase records and UNICEF certificates established intended project use.

Exemption under Notification No. 108/95-CE applies to goods supplied for Government-approved projects financed by listed organisations where the organisation certifies intended use. The record, including purchase orders, delivery instructions and UNICEF procurement certificates, showed that the goods were ordered by UNICEF for use in UNICEF-assisted projects, satisfying the factual foundation for the exemption. The view that eligibility depended only on a certificate from an officer not below Deputy Secretary level was treated as a reading of the notification. The appellant was held entitled to the exemption for the clearances covered by the three show cause notices.

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Issues: Whether the appellant was entitled to the benefit of Notification No. 108/95-CE dated 28.08.1995 in respect of clearances made to UNICEF-assisted projects, and whether the certificates issued by UNICEF officials were sufficient to establish eligibility.

Analysis: The notification, as amended by Notification No. 40/99-CE dated 02.11.1999, exempts goods supplied to organisations listed in the annexure when the supplies are meant for projects approved by the Government of India and financed by such organisations, provided the organisation certifies that the goods are intended for such use. The record contained purchase orders, delivery instructions and certificates issued by UNICEF procurement showing that the goods were ordered by UNICEF for use in UNICEF-assisted projects. On that basis, the required factual foundation for the exemption was satisfied, and the view that only a certificate from an officer not below the rank of Deputy Secretary was required was held to be a reading of the notification.

Conclusion: The appellant was held entitled to the exemption under Notification No. 108/95-CE for the clearances covered by the three show cause notices.

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