Project use exemption for tractors was upheld where certified use showed they formed part of a launch vehicle project.

Tractors supplied for a launch vehicle project were treated as eligible for exemption under Notification No. 64/95 because the supporting certificate stated that they were part and parcel of the project and were intended for transporting rocket fuel and related materials. The certificate also identified the description, quantity, and intended use of the goods, and no material was produced to discredit it or show impropriety. On that basis, the ordinary description of the goods did not prevent exemption where their actual use fell within the notified project. The denial of exemption was therefore unjustified, and the impugned order was set aside with consequential relief.

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Issues: Whether tractors supplied to a launch vehicle project were eligible for exemption under Notification No. 64/95 dated 16.3.1995.

Analysis: The certificate issued by SHAR stated that the tractors were used as part and parcel of the launch vehicle project for transporting rocket fuel and related materials. The certificate also specified the description, quantity, and intended use of the goods. No material was produced to disbelieve the certificate or to show that it was improper. Although the goods were tractors, their use in the project brought them within the scope of the exemption notification.

Conclusion: The denial of exemption was unjustified and the tractors were held eligible for exemption under the notification.

Final Conclusion: The impugned order was set aside and the appeal succeeded with consequential relief.

Ratio Decidendi: Goods used as part of a notified project and supported by a proper certificate of intended use may qualify for exemption under the notification even if their ordinary description is different.

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