Project import classification does not bar a separate exemption when the goods independently meet the notification description.

Imported goods assessed as project imports under Heading 98.01 were held to remain eligible for a separate exemption when they independently satisfied its description. The imported multi-layer coater/extruding machine fell under Chapter 84 and matched Notification No. 125/86, while the project-import notification did not impliedly exclude that benefit. The proviso to Notification No. 132/85 preserved other exemptions, so exemption could not be denied merely because the goods were cleared as a project import. The denial of exemption was therefore unsustainable, and the orders were set aside with consequential relief.

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Issues: Whether goods imported as project imports under Heading 98.01 were still entitled to the exemption available under Notification No. 125/86 for multi-layer coater/extruding machines falling under Chapter 84, notwithstanding the operation of Notification No. 132/85.

Analysis: The imported machine was admittedly a multi-layer coater/extruding machine and, apart from its assessment under Heading 98.01 as a project import, it was classifiable under Chapter 84. The exclusion of one exemption could not be inferred merely because the goods were cleared under the project import heading. The proviso to Notification No. 132/85 preserved exemptions granted by other notifications, and the controlling principle was that if goods answer the description in another exemption notification, that benefit cannot be denied solely because they were assessed under Heading 98.01. The reasoning adopted by the Supreme Court in the cited decision supported this view.

Conclusion: The importer was entitled to the benefit of Notification No. 125/86, and the denial of exemption was unsustainable.

Final Conclusion: The impugned orders were set aside and the appeals succeeded with consequential relief according to law.

Ratio Decidendi: Where an imported article satisfies the description in a specific exemption notification, that exemption cannot be denied merely because the goods were assessed as a project import under Heading 98.01, especially when the project-import notification preserves the operation of other exemptions.

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