Project import benefit under Heading 84.66 requires a qualifying project and strict registration compliance before contract approval.

Heading 84.66 project import treatment applies only when imported goods are shown to be required for the initial setting up or substantial expansion of a specified qualifying project and the prescribed registration conditions are met. On the facts, the importer failed to establish a project report, a proper link between the labelling and cello wrapping machines and any qualifying project, and the required clearance from the Director General of Technical Development. A certificate from the Development Commissioner (SSI) was not accepted as a substitute. The claimed project import benefit was therefore unavailable, and contract registration was refused under the project import regime.

---

---

Issues: Whether the imported labelling machine and cello wrapping machine qualified for project import treatment and contract registration under Heading 84.66 of the Customs Tariff Act, 1975 read with the Project Imports (Registration of Contract) Regulations, 1965.

Analysis: Heading 84.66 applied only where the imported items were required for the initial setting up of a unit or for the substantial expansion of an existing unit of a specified industrial plant or other notified project. On the facts found, there was no project report, no adequate linkage between the machines and any qualifying project, and no clearance from the Director General of Technical Development as contemplated by the Regulations. The certificate from the Development Commissioner (SSI) was not treated as compliance with that requirement. The precedents cited by the importer were found distinguishable on facts and on the regulatory framework involved.

Conclusion: The machines did not qualify under Heading 84.66, and refusal to register the contract for project import was in law; the claim failed against the assessee.

Final Conclusion: The imported goods were not shown to form part of a qualifying project import, so the contract was not entitled to registration under the project import regime.

Ratio Decidendi: Project import benefit under Heading 84.66 is available only when the imported goods are shown to be required for a specified qualifying project and the prescribed contractual and administrative conditions are satisfied.

---