- SC dismisses Revenue SLP, affirms excise duty exemption under Notification No. 108/95-CE on ‘earth moving equipment’ supplied to contractors executing “Golden Quadrilateral Road Project” financed by UN / International Organization;
- Upholds HC decision, which had earlier rejected Revenue contention that since supply had been made to individual contractors for the project in lieu of Project Implementing Authority per se, as envisaged under the impugned Notification, exemption was unavailable;
- HC had concurred with CESTAT that goods were used in Project and fact that after completion thereof, same were supplied to various sub-contractors entrusted to retain them could not stand in way of granting exemption under Notification absent evidence of any possible misuse for unintended purpose;
- HC had observed, “The use of the phrase ‘supplied to the projects financed by the said United Nations or an International Organisation and approved by the Government of India’ clearly shows that the condition for grant of exemption is supply of the goods towards the project and nothing beyond”;
- According to HC, Notification was issued in public interest and being beneficial in nature, fact that machineries were not given directly to Project Implementing Authority but to agency executing work could not lead to denial of benefit to assessee : SC