Project-import concessional duty for replacement parts applies only when imports are covered by a registered contract under the scheme.

Concessional project-import duty under Chapter heading 84.66(ii) applies to spare, replacement, raw material or consumable goods only when they are imported as part of a contract registered under the project import scheme, and when the prescribed value and essentiality requirements are met. Replacement parts for diesel generator sets were outside the scheme because no registered customs contract covered those goods, and the earlier registration issue had already been decided against the assessee. Authorities on registered or de-registered contracts did not assist, as the statutory condition of import under a registered project contract was not satisfied. The benefit of concessional duty was therefore unavailable.

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Issues: Whether replacement parts of diesel generator sets were eligible for concessional duty as project imports under Chapter heading 84.66(ii) when no contract for those goods had been registered with Customs.

Analysis: The concessional scheme under Chapter heading 84.66(ii) applies only to spare parts, raw materials or consumables imported as part of contract or contracts registered under the project import scheme, subject to the prescribed value limit and the requirement that they be essential for the plant or project. The two diesel generator sets for which the replacement parts were imported were not covered by any registered contract, and the prior registration issue had already been decided against the assessee. Authorities and precedents concerning registered or de-registered contracts did not assist the assessee because the present goods were not imported under a registered project import contract.

Conclusion: The replacement parts were not eligible for concessional duty under Chapter heading 84.66(ii), and the decision was against the assessee.

Final Conclusion: The appeal failed because the statutory condition of import under a registered project contract was not satisfied.

Ratio Decidendi: Benefit of project-import concessional duty for spare or replacement parts is available only when the goods are imported as part of a registered contract under the relevant project import heading.

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