Mega Power Project exemption upheld for indigenous supplies meeting customs-linked notification conditions and project certification requirements.

Exemption under Notification No. 6/2006-CE was treated as available for goods supplied to a Mega Power Project where the supply was made through International Competitive Bidding and the goods were of a kind that would qualify for customs exemption on import. The record also showed that the supplier was covered as a sub-vendor under the Project Authority Certificate, and the project satisfied the required mega power project conditions. On those facts, and consistent with earlier comparable rulings, the exemption claim was upheld and the Revenue's challenge failed.

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Issues: Whether the respondent was entitled to exemption under Notification No. 6/2006-CE dated 01.03.2006 for goods supplied to a Mega Power Project, notwithstanding the Revenue's objection based on customs classification and the mode of indigenous procurement.

Analysis: The exemption under the notification was considered available where the goods were supplied for a Mega Power Project in response to International Competitive Bidding and were of the kind that would be exempt from customs duty on import into India. The impugned goods were covered by the relevant customs exemption notification for project imports, and the record showed that the respondent was included as a sub-vendor under the Project Authority Certificate. The finding that the project satisfied the requisite mega power project conditions was also accepted. Since similar disputes had already been decided in favour of assessees on comparable facts, no infirmity was found in the appellate order.

Conclusion: The respondent was entitled to the exemption, and the Revenue's challenge failed.

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