Project import concession upheld for Jaipur Metro goods where project certificate covered the equipment and supply chain.

Project import benefit was available for goods imported for the Jaipur Metro Project because the sponsoring authority's certificate specifically covered the equipment and identified the importer as a contractor linked to the main contractor. The record showed the goods were meant for ultimate supply to the project through BEML, and there was no allegation that they were unrelated to the metro project. A direct foreign supply contract with the importer was treated as a technical requirement that did not defeat the concessional duty treatment. The importer was therefore entitled to the concessional rate of duty under the Project Import Regulations.

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Issues: Whether the importer was entitled to concessional rate of duty under Project Import Regulations for goods imported as part of the Jaipur Metro Project.

Analysis: The goods imported by the assessee were specifically covered by the certificate issued by the sponsoring authority for the Jaipur Metro Project. The certificate identified the equipment required for the project and also referred to the importer as a contractor of the main contractor. The record showed that the imports were for supply ultimately to the project through BEML, and there was no allegation that the goods were unrelated to the metro project. Denial of the benefit merely because the foreign supply contract was not executed directly by the importer was treated as a technical objection not sufficient to defeat the project import benefit.

Conclusion: The importer was entitled to the concessional rate of duty under the Project Import Regulations.

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