Customs exemption for power generation projects denied where captive power plant exclusion applied and claim failed on the facts.

The exemption under Notification No. 21/2002-Cus for goods classified under Chapter Heading 9801 was available only for power generation projects and excluded captive power plants set up by projects engaged in activities other than power generation. Applying the notification to the importer's claim, the Tribunal found the goods did not satisfy the conditions for concessional treatment on the facts. The SC accepted that view and held that the appellant was not entitled to the exemption benefit, affirming the denial of the claim.

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Issues: Whether the appellant was entitled to the benefit of Exemption Notification No. 21/2002-Cus dated 01.03.2002 for goods covered by Serial No. 399 of Chapter/Heading No. 9801 meant for power generation projects, notwithstanding the exclusion relating to captive power plants set up by projects engaged in activities other than power generation.

Analysis: The dispute turned on the applicability of the exemption entry to the appellant's import claim. The Tribunal had found, on the facts and the governing notification, that the goods did not qualify for the concessional treatment claimed. On review of the record, the Court accepted that the Tribunal's conclusion accorded with both the legal position under the notification and the factual matrix of the case.

Conclusion: The appellant was not entitled to the exemption benefit and the finding against the claim was upheld.

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