Project import exemption applies where an Essentiality Certificate covers the goods for an approved pipeline project.

Field joint coating material, welding electrodes, magnetic ribbon and welding material imported for a notified pipeline project were held eligible for concessional duty under the project import scheme because they were covered by the sponsoring Ministry's Essentiality Certificate and imported for use in the approved project. Customs could not deny the benefit merely because the goods were consumables or because the project involved more than one importer. An Essentiality Certificate is treated as proof that the eligibility conditions for project-import exemption are met, and the project import entry applies to the project as approved.

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Issues: Whether field joint coating material, welding electrodes, magnetic ribbon and welding material imported for the Mumbai-Manmad pipeline project were eligible for concessional duty treatment under the project import exemption scheme.

Analysis: The items in dispute were covered by the Essentiality Certificate issued by the sponsoring Ministry and were imported for use in the notified pipeline project. Once the project had been registered and the certificate specifically recommended the appellant for the benefit of project imports, the customs authorities could not deny the exemption merely because the items were consumables or because the project involved more than one importer. The principle applied was that an Essentiality Certificate is proof of fulfilment of the eligibility conditions for the exemption, and the project import entry is to be applied to the project as approved.

Conclusion: The items were eligible for concessional duty under the project import notification, and the denial of the benefit was unsustainable.

Ratio Decidendi: Where the sponsoring authority issues an Essentiality Certificate covering the imported items for an approved project, customs authorities cannot go behind that certificate to deny project-import exemption if the eligibility conditions are otherwise satisfied.

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