TaxTMI 
TaxTMI 
2018 (5) TMI 1247
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....of the Ministry of Surface transport, By National Highway Authority of India, by the Public Works Department of State Government or by a road construction corporation under the control of the government of a State Or Union Territory etc." It was argued that the eligible Department have been specifically named in the notification, covering only those which are part of and/or under the control of Central/State Government and Union Territories are eligible for the exemption. He argued that the notification has to be strictly read and interpreted. Learned AR relied on the decision of Tribunal in the case of Shreeji Construction Vs. Commissioner of Customs (Import), Mumbai - 2014 (313) ELT 566 (Tri.- Mumbai). 3. Learned Counsel for the respondent argued that MMRDA is established under the Mumbai Metropolitan Regional Development Authority Act, 1974 and therefore a road construction corporation under the control of the State Government. He relied on the impugned order. Learned Counsel also relied on the decision of Tribunal in the case of Patel Engineering Ltd. Vs. Commissioner of Customs (Import), Mumbai - 2013 (295) ELT 243 (Tri.-Mumbai) which was confirmed by Hon'ble Apex Co....
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....road development corporations and their objectives, it can be seen that both legally and functionally, road development corporations and a metropolitan regional development authority are distinct entities. The major differences are summarized in the table below. S. No. Characteristics Maharashtra State Road Development Corporation Mumbai Metropolitan Regional Development Authority (MMRDA) 1 Nature of the organization Created under a Resolution of the State Government as a State Govt. undertaking Created under a separate statute as a local authority 2 Treatment under the Companies Act, 1956 Registered as a company under Section 3 of the Companies Act Not a company - it is a "body corporate" and deemed as a "local authority" 3 Liability Limited liability Not specified 4 Functions/Responsibilities Construction and maintenance of roads Development of the metropolitan region and the major projects undertaken include transportation, water resources management, public housing, environmental management, urban land policy, industrial growth policy and office location policy 5 Jurisdiction Entire State of ....
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....fication as under: "22. As regards the plea of the appellant that the Exemption Notification should receive a liberal construction to further the object underlying it, it is well settled that a provision providing for an exemption has to be construed strictly. In Novopan India Ltd. (supra), dealing with the same issue in relation to an exemption notification, a three- judge Bench of this Court, stated the principle as follows : '16. We are, however, of the opinion that, on principle, the decision of this Court in Mangalore Chemicals - and in Union of India v. Wood Papers referred to therein - represents the correct view of law. The principle that in case of ambiguity, a taxing statute should be construed in favour of the assessee - assuming that the said principle is good and sound - does not apply to the construction of an exception or an exempting provision; they have to be construed strictly. A person invoking an exception or an exemption provision to relieve him of the tax liability must establish clearly that he is covered by the said provision. In case of doubt or ambiguity, benefit of it must go to the State. This is for the reason explained in Mangalore Ch....
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....duty on specified equipment imported for road construction by contractors of Ministry of Road Transport and Highways, NHAI and State Governments is being extended to contracts awarded by Metropolitan Development Authorities. " Similarly in the Explanatory Memorandum, in the portion relating to changes in Customs Duties, under section V relating to CAPITAL GOODS/ INFRASTRUCTURE, in Serial No. 6, it is explained as follows :- "6) Full exemption from basic customs duty, CVD and SAD is being extended to equipment imported for road construction projects awarded by Metropolitan Development Authorities. " The expression used in both the Budget Speech and the Explanatory Memorandum is "exemption is being extended". The question of extension of exemption would arise, only when it is not available. If it is already available, there is no need for extending the exemption. Thus the legislative intention is very clear. Prior to budget 2012, customs duty exemption was not available on road construction equipment imported under a contract awarded by a Metropolitan Development Authority. 5.9 This statement given by the Government at the time of extending the ben....