Exemption for Goods in U.N. Projects: Permanent Use Required; Temporary Use by Contractors Not Eligible. Misinterpretation Noted.

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....Exemption to goods supplied to projects funded by the U.N. or other international organizations - As per the Circular, the exemption is applicable to goods which form part of the project on permanent basis and not to goods which are used for execution of the project and after completion of the project remain with the contractors, for further deployment in other projects. This interpretation has not been envisaged in the Explanation2 - the department has interpreted the Explanation 2 wrongly. - AT....