Project import classification did not bar a separate exemption for horological machinery under the relevant notification.

Goods cleared as project imports under Heading 98.01 were held not to lose a separate exemption available by description. The project import notification limited customs duty at a specified rate but expressly preserved other exemptions in force, while the horological notification applied to horological machinery and testing equipment without restricting the benefit to a tariff heading. Read together, the notifications allowed concurrent operation, so classification as a project import did not bar the assessee from claiming the horological exemption.

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Issues: Whether goods imported and cleared as project imports under Heading 98.01 of the First Schedule to the Customs Act, 1962 were entitled to the benefit of a separate exemption notification for horological machinery.

Analysis: The project import notification exempted goods imported as project imports from customs duty beyond a specified rate, but expressly stated that it would not affect any exemption available under any other notification in force. The horological notification granted exemption to horological machines and testing equipment without limiting the benefit to a particular tariff heading. The two notifications were to be read together, and the fact that the goods were classified and cleared as project imports did not exclude the separate exemption otherwise available for horological machinery.

Conclusion: The assessee was entitled to claim the benefit of the horological exemption notification notwithstanding clearance of the goods under Heading 98.01.

Final Conclusion: The customs classification as a project import did not bar the assessee from availing an independent exemption notification applicable to the goods by description.

Ratio Decidendi: A separate exemption notification applicable to goods by description remains available unless the project import notification or the relevant exemption expressly excludes such concurrent benefit.

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