Project exemption for flanges allowed; Project Authority certificate not required for domestic manufacturers under the notification scheme.

Exemption for clearance of flanges under Notification No. 6/2006-EX read with Notification No. 21/2002-CUS was available where the goods were supplied against international competitive bidding for execution of a project by a contractor or sub-contractor, and their eligibility under the relevant list had already been accepted in the appellant's own case. The Tribunal found no reason to depart from that earlier finding. It also held that the Project Authority certificate condition applied to importers, not to domestic manufacturers, so denial of exemption for absence of that certificate was unsustainable. The claimed exemption was therefore allowed and the confirmed demand could not stand.

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Issues: Whether the appellant was entitled to exemption for clearance of flanges under Notification No. 6/2006-EX dated 01/03/2006 read with Notification No. 21/2002-CUS dated 01/03/2002, and whether denial of exemption for want of Project Authority certificate was sustainable.

Analysis: The goods were supplied against international competitive bidding for execution of the project by the contractor/sub-contractor, and the eligibility of the goods under the relevant list had already been accepted in the appellant's own case. The impugned order gave no reason for departing from that earlier finding. On the certificate requirement, the Tribunal noted that the relevant condition applied to importers and not to domestic manufacturers; therefore, denial of exemption on the ground of absence of Project Authority certificate was not justified.

Conclusion: The appellant was entitled to the claimed exemption, and the demand confirmed in the impugned order could not be sustained.

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