Project import benefit survives prior clearance where registration was applied for before clearance; matter remanded for merits.

Clearance of imported goods after filing an application for registration under the Project Import Regulations, 1986 did not by itself extinguish entitlement to Heading 98.01 benefits where the registration request had already been made before clearance. The lower appellate authority had rejected the matter only on the basis of clearance and had not examined whether the original rejection of registration was correct on merits. As the substantive entitlement to registration and the consequential project import benefit remained undecided, the matter was remanded for fresh consideration on merits and the impugned order was set aside.

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Issues: Whether clearance of the imported goods after filing of the registration application under the Project Import Regulations, 1986 barred the appellant from claiming the benefit of Heading 98.01 of the Customs Tariff Act, 1975, and whether the matter required remand for a decision on merits.

Analysis: The mere clearance of the goods did not by itself deprive the appellant of the benefit under the Project Import Regulations, 1986 where the application for registration of the contract had already been made before clearance. The lower appellate authority had disposed of the appeal only on the ground that the goods had been cleared and had not examined whether the original authority was correct in rejecting the registration application. Since the core question of entitlement to registration and the consequential benefit had not been decided on merits, the matter required reconsideration by the appellate authority.

Conclusion: The issue was not finally decided against the appellant and the matter was remanded to the lower appellate authority for determination on merits.

Final Conclusion: The impugned order was set aside and the appeal succeeded to the extent of obtaining a remand for fresh adjudication on the merits of the registration claim.

Ratio Decidendi: Clearance of imported goods after timely application for registration does not, by itself, extinguish the right to seek project import benefits where the substantive entitlement has not been examined on merits.

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