TMI Blog2007 (11) TMI 470X X X X Extracts X X X X X X X X Extracts X X X X ..... engaged in the execution of various projects of water supply and irrigation all over the country. They were entrusted with the work of providing 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. They submitted an application on 15-12-2006 to the Deputy Commissioner of Customs for registration of two projects for K.W.A. for Pattuvam/Meenad under Project Import Regulations, 1986 (P.I.R.) under C.T.H. 98.01 as Project Imports The Adjudicating Authority passed an Order-in-Original dated 1-2-2007 where ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n be transmission equipment . He relied on the decision rendered in the case of CC, Mumbai v. Toyo Engg. India Ltd. - 2006 (201) E.L.T. 513 (S.C.). He invited our attention to the explanation in the Notification which clarifies that water supply projects also include water treatment plant and it is no way restricting its meaning. Exemption notification cannot be read strictly. He relied on the decision of the Apex Court in the case of CC v. Rupa Co. - 2004 (170) E.L.T. 129 (S.C.). He contended that the explanation is an inclusive definition. It is not exhaustive but extensive and cannot be treated as restricted in any sense. While dealing with an inclusive definition, it would be inappropriate to put a restricted interpretation upon terms of wider denotation. He relied on the following decisions : (i) State of Bombay v. Hospital Mazdccr Sabha -AIR 1960 SC 610 (ii) CIT, AP v. Taj Mahal Hotel, Secunderabad - AIR 1972 SC 168 (iii) Delhi Judicial Service Association 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-Cu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 animal consumption. Explanation - Drinking Water Supply Project includes a plant for desalination, demineralization or purification of water or for carrying out any similar process or processes intended to make the water fit for human or animal consumption, but does not include a plant supplying water for industrial purposes. 6.1 The point regarding the eligibility of projects under the above-mentioned entry has been exhaustively dealt with in the Pratibha Industries case. Although in Pratibha Industries case, there have been many other reasons for rejecting the entitlement to Project Import for pipes, there is a categorical finding that the Project Import concession is only available for water treatment plant. This is clear from the following finding, which we are extracting from the said order. 3.2(f)(c) The ld. Sr. Counsel for Revenue took us through t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly projects, for supply of water for human or animal consumption. It is true that the term water supply project has not been defined. However, the Pratibha decision has extracted the definition of Water Supply Engineering from the McGraw Dictionary of Scientific and Technical Terms - Water Supply Engineering (Civil Engg.) A branch of Civil Engineering concerned with the development of sources of supply, transmission, distribution and treatment of water . The Tribunal 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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