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2019 (1) TMI 191 - AT - CustomsProject import - classification of the project - Water Supply Project or not - denial of benefit of Notification No. 14/2004 dated 8.1.2004 - According to Revenue, an irrigation project such as the present one, which finds a specific entry under CTH 98010012, ‘for irrigation plant’ cannot be considered for registration as a water supply project under the general entry under CTH 98010020, ‘for other projects’. Held that:- The Notification No. 14/2004-Cus., dated 8.1.2004 granted exemption from payment of CVD on ‘water supply project’ falling under Tariff Heading 9801 of First Schedule to the Customs Tariff Act, 1975 as well as exemption from payment of basic customs duty leviable thereon. An “explanation” to the notification defined ‘Water Supply Project’ thus: “Water Supply Project includes a plant for desalination, demineralisation or purification of water or for carrying out any similar processes intended to make water fit for agricultural or industrial use.” In the present case, the import by the respondent was made for setting up a ‘water supply project’ for agricultural and industrial use. The importer furnished the requisite certificate from the Sponsoring Authority viz. the District Collector, Mahbubnagar as required under Notification No.14/2004 dated 8.1.2004, who certified that the goods were to be used at the initial setting up of a water supply project, for Agricultural and industrial use - It is not disputed that the Sponsoring Authority’s revised certificate/letter dated 15.5.2007 had clarified that the project in question is a water supply project and the said project goes through a process of making the water fit for agricultural use and thereby making them qualify as a process plant which is within the inclusive clause of the notification. Had the said letter dated 15.05.2007 been not there, still the certificate of the year 2006 issued by the Sponsoring Authority is sufficient for availing the exemption under the said notification. The Hon’ble Supreme Court in the matter of M/s. Zuari Industries Ltd. Vs. Commissioner of Central Excise & Customs [2007 (3) TMI 12 - SUPREME COURT OF INDIA] has laid down that once the project has been approved as a water supply project by the Sponsoring Authority, the Revenue cannot go beyond such certificate and deny the benefit of the notification. From the impugned order, it is clear that the respondent exhibited their site plans and flow charts before the ld. Commissioner and the said Commissioner was of the opinion that it clearly shows that the water being channelized through treatment and certain process before being released as fit for irrigation and therefore the revenue is not justified in denying the benefit of exemption notification to the respondent - appeal dismissed - decided against Revenue.
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