Project-specific exemption for water supply works upheld where conductors were certified for lift irrigation use.

Notification No. 3/2004-CE was applied to ACSR Zebra conductors supplied for a lift irrigation and related water supply project. The goods were cleared against District Collector certificates, and the Tribunal treated the case as falling within its earlier interpretation that the notification covers equipment and components used for setting up water supply plants. A contrary ruling was distinguished because it involved different goods and a different factual matrix. The exemption was therefore upheld and denial of the benefit was rejected.

---

---

Issues: Whether the respondent was entitled to exemption under Notification No. 3/2004-CE for ACSR Zebra conductors supplied for use in a lift irrigation scheme and related water supply works.

Analysis: The finished goods were cleared on the strength of certificates issued by the District Collector and were used for transmission of electricity in a lift irrigation scheme. The cited notification had already been interpreted by the Tribunal in a similar matter to cover equipment and components required for setting up water supply plants, and the present facts were found to fall within the same principle. The relied-upon contrary decision was distinguished on facts because it involved different goods and a different factual setting.

Conclusion: The exemption was applicable and the Revenue's challenge failed.

Final Conclusion: The appeal was not maintainable on merits and the order granting exemption was sustained.

Ratio Decidendi: Where goods are supplied for an identified water supply or lift irrigation project and the conditions of the exemption notification are satisfied, the exemption cannot be denied merely because the project has an allied power-generation or infrastructure component.

---