Beneficial exemption notification construed by its text: project supplies through contractors remained eligible when stated conditions were satisfied.

Notification No. 108/95-CE grants exemption to goods supplied for projects financed by a United Nations body or international organisation and approved by the Government of India, where the prescribed certificate is produced. The notification does not require direct supply to the project implementing authority or direct payment by the financing organisation. On these facts, goods supplied through contractors for Asian Development Bank-financed projects remained eligible because the project was financed and approved, and all stated conditions were satisfied. The exemption could not be denied merely because the goods reached the contractors executing the work.

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Issues: Whether the appellant was entitled to the benefit of Notification No. 108/95-CE for goods supplied for projects financed by the Asian Development Bank and approved by the Government of India, even though the goods were supplied through contractors.

Analysis: The exemption notification covered goods supplied to projects financed by a United Nations body or an international organisation and approved by the Government of India. The record showed that the projects were financed by the Asian Development Bank, were approved by the Government of India, and the required certificate had been produced. The notification did not require direct supply to the project implementing authority or payment directly by the financing organisation. Since the goods were supplied for the project and all conditions of the notification were satisfied, the exemption could not be denied merely because the goods reached the contractors executing the work.

Conclusion: The appellant was entitled to the exemption under Notification No. 108/95-CE.

Final Conclusion: The denial of exemption was unsustainable and the appeal succeeded with consequential relief.

Ratio Decidendi: A beneficial exemption notification must be applied according to its text, and exemption cannot be denied by reading into it a requirement of direct supply to the project authority where the notification only requires supply to the financed project and its other stated conditions are fulfilled.

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