Exemption under Notification No. 6/2006-C.E. not denied merely because the supplier was not the bidding participant.

Exemption under Notification No. 6/2006-C.E. was available for goods supplied to a water treatment project where the main bidder had participated in International Competitive Bidding. Direct participation by the manufacturer-supplier was not a mandatory condition, and the exemption could not be denied merely because the supplier acted as a sub-contractor. The operative requirement was that the supply be made under a contract awarded to a bidding participant and that the notification's conditions be otherwise satisfied. On that basis, denial of duty, interest and penalty relief was not justified.

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Issues: Whether exemption under Notification No. 6/2006-C.E. could be denied merely because the supplier was a sub-contractor and had not itself participated in the International Competitive Bidding.

Analysis: The goods were supplied for a water treatment project and the main bidder had participated in the International Competitive Bidding. The decisive question was whether direct participation by the supplier was mandatory for availing the exemption. The Tribunal followed the settled view that the notification does not require the manufacturer-supplier itself to be the bidder, so long as the supply is made against a contract awarded to a participant in the bidding and the goods are actually supplied for the eligible project. No non-fulfilment of any condition of the notification was shown.

Conclusion: The exemption was available to the respondent and denial of benefit on the ground of non-participation in bidding was not justified.

Final Conclusion: The departmental challenge failed and the order granting exemption, with consequent relief from duty, interest and penalty, was sustained.

Ratio Decidendi: Exemption under Notification No. 6/2006-C.E. cannot be denied solely because the manufacturer did not itself participate in International Competitive Bidding, if the supply is made to a project contract awarded to a participant and the notification conditions are otherwise satisfied.

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