TaxTMI 
TaxTMI 
2007 (11) TMI 470
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....ing drinking water to Pattuvam and Meenad by Kerala Water Authority (K.W.A.). K.W.A.. had invited bids for implementation of J.B.I.C. assisted Kerala Water Supply Project. The said water supply project consists of 5 water supply schemes in 5 different districts, out of which, the appellants were awarded the contract for 'Treated Water Transmission Main and Associated Works' to be implemented at Pattuvam and Meenad in Kerala. The appellants entered into an agreement with K.W.A. on 31-3-2006 for construction of the transmission main and associated works of water supply scheme and Pattuvam and Meenad and adjoining villages. They placed orders with M/s. Xinxing Ductile Iron Pipes Co. Ltd., P.R. of China for supply of DI pipes and pipe fittings.....
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....r 'Project import', even if they might be covered under other headings. He relied on the decision of the Hon'ble Apex Court in the case of Zuari Industries Ltd. v. C.C.E. & Cus. - 2007 (210) E.L.T. 648 (S.C.). He contended that the import of pipes is for undertaking water supply project as they are essential and eligible for the registration under PIR, 1986. Import benefit is specifically available to water supply projects and is not restricted to water treatment plants alone. It defeats the purpose and intention of the legislature for granting the project import status to water supply project. Pipes are a technical necessity. The learned Advocate invited our attention to Notifications No. 42/96-Cus., dated 23-7-1996 SL. No. 26 and also Not....
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....ociation v. State of Gujarat - AIR 1991 SC 2176 4.1 The learned Advocate stated that Board's Circular No. 659/50/2002-CX.dated 6-9-2002 clarified that the exemption is available under Notification No. 21/2002-Cus.dated 1-3-2002 for water treatment plant whereas the Notification itself grants exemption to drinking water supply projects. He urged that Beard Circular cannot impose limitation which is not provided in the Notification. He relied on the decision in the case of Tata Teleservices Ltd. v. C.C. - 2006 (194) E.L.T. 11 (S.C.). Further, as regards Pratibha Industries Ltd. v. C.C.E. - 2005 (188) E.L.T. 433 (Tri.-Mumbai), he urged that the above decision is not applicable in this case since in the Pratibha Industries case the party ....
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.... invited our attention to the relevant petitions of the findings of the Tribunal in the above-mentioned case and in view of the clear decision of the Tribunal, the authority's decision in rejection of the contract in the Custom House under the Project Import Regulations is legal and proper. Therefore, she requested the Bench to uphold the impugned order. 6. We have gone through the relevant records and also the submissions made by the learned Advocate and the learned Departmental Representative. Let us reproduce the relevant entry which gives the Project Import concession to various projects. Entry No. 26 of Notification No. 42/96 reads as follows : Entry No. 26: Drinking Water Supply Projects for supply of water for human or an....
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....We agree with the id. Sr. Counsel for respondent that issue of an ad hoc exemption order under Section 25(2) cannot be binding inter/relation of a law, since interpreting the classification eligibility based on such an interpretation would be worse than arriving at classification by reading exemption notifications. The settled law on the subject is that classification cannot be arrived at by looking at notifications of exemption of duty. However we find that the grant of exemption under Section 25(2) in exercise of powers of the Government & when read with the scope of the Finance Minister Budget speech & the Boards classification & fact that on Central Excise side, exemption to such pipes used anterior to Water Treatment Plant stage have b....
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....has also stated the following - This authoritative understanding would induce us to conclude that "Drinking Water Supply Project for Human and Animal" will encompass and consists of the following units viz., (i) Source of water supply (ii) Treat unit (filtration aeration pumping & storage of source water as drinking water) (iii) Distribution network from the stored treated drinking water to substorage etc., pumping and transmission up to the consumers (i.e. Human/animal) . After quoting such an authoritative definition of Water Supply Engineering, we do not understand how a water supply project will exclude bringing water from the source to the treatment plant by means of pipes and after treatment, the treated water has to be supplied. ....