Nuclear power project exemption applies where imported goods are used for the specified project and certification requirements are met

Exemption under Notification No. 21/2002-Cus. applied to goods imported for setting up a nuclear power project where the goods were used in the project and the prescribed project conditions, including capacity and certification, were satisfied. The decisive point was that the notification attached the benefit to the goods and their end-use for the specified project, not to the identity of the importer. On that basis, denial of the exemption was unjustified and the benefit was admissible.

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Issues: Whether the benefit of Notification No. 21/2002-Cus. dated 01.03.2002 could be denied to a contractor importing goods required for setting up a nuclear power project, when the goods were used for the project and the project conditions stood certified.

Analysis: The notification granted exemption to goods required for setting up a nuclear power project specified in List 43 and satisfying the prescribed capacity and certification requirements. The record showed that the imported goods were meant for and used in the nuclear project, and the relevant conditions regarding the nature of the project, its capacity, and certification by the designated authority were not in dispute. The decisive consideration was that the notification attached the exemption to the goods and their end-use for the project, not to the identity of the person who physically imported them. Since the goods were imported on account of the project and used therein, denial of the exemption was unjustified.

Conclusion: The exemption under Notification No. 21/2002-Cus. dated 01.03.2002 was admissible to the appellant.

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