Exemption scope clarified: goods must be permanently incorporated into projects to qualify for excise duty relief. The exemption from excise duty under Notification No. 108/95 CE (as clarified by Explanation 2) applies only to goods procured with project funds and actually used and consumed in the core project activity, and only where such goods become part of the project on a permanent basis. Goods or equipment purchased independently by contractors that remain with the contractors after project completion and are redeployed commercially do not qualify. The amendment is clarificatory; pending disputes should be resolved accordingly and essentiality certificates must be issued only for goods meeting this permanent-incorporation criterion.
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Provisions expressly mentioned in the judgment/order text.
Exemption scope clarified: goods must be permanently incorporated into projects to qualify for excise duty relief.
The exemption from excise duty under Notification No. 108/95 CE (as clarified by Explanation 2) applies only to goods procured with project funds and actually used and consumed in the core project activity, and only where such goods become part of the project on a permanent basis. Goods or equipment purchased independently by contractors that remain with the contractors after project completion and are redeployed commercially do not qualify. The amendment is clarificatory; pending disputes should be resolved accordingly and essentiality certificates must be issued only for goods meeting this permanent-incorporation criterion.
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