Court grants customs duty exemption for goods used in Nuclear Power Project under Notification No.21/2002-Cus.

The appeals were allowed, granting the appellant the benefit of Notification No.21/2002-Cus. The court emphasized that the exemption should apply to goods used in the Nuclear Power Project, certified by the designated authority, regardless of the importer. The appellant's argument that the goods were essential for the project and imported with project authority knowledge was accepted, leading to the decision in their favor.

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Issues:
Denial of benefit of Notification No.21/2002-Cus. dt. 1.3.2002 for goods used in a Nuclear Power Project.

Analysis:
The appellant contended that as a contractor of the nuclear project, the goods used for the project should not be denied the benefit of the notification. They relied on a previous order of the Tribunal in support of their submission. On the contrary, the Revenue supported the decisions of the lower authorities. The show cause notice alleged that the exemption under Condition No.87 of the notification applied only if the goods of Chapter Heading 98.01 were imported by specific entities. However, it did not mention that goods imported by other contractors for project use would not receive the benefit of the notification.

The notification in question pertains to goods required for setting up a nuclear project with a capacity of 440 MW or more, certified by a designated officer in the Department of Atomic Energy. The law mandates that the goods specified in List 43 must be imported for the nuclear project's establishment, a fact undisputed in this case. The appellant argued that the goods were imported with the knowledge of the nuclear project authority, as evidenced by their involvement in the import process. The essential aspect is the goods' eligibility for exemption, not the importer. As the use of goods in the nuclear project was certified by the designated authority and undisputed by Revenue, the appellant should not be denied the notification's benefit, leading to the allowance of the appeal.

In conclusion, the appeals were allowed, emphasizing that the benefit of the notification should extend to the appellant based on the import and use of goods in the Nuclear Power Project as certified by the designated authority, irrespective of the importer.

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