2022 (11) TMI 1400 - AAR - Customs

Project Import - registration of the project can be done or not - concessional duty benefit under Project Import Regulations under the CTH 9801 with recommendation/sponsoring letter issued by the PMRDA - HELD THAT - The project of the applicant is the Pune Metro Line 3 (Pune - Hingewadi) and is carried out by Pune IT City Metro Rail under the aegis of PMRDA. As per the official website of the PMRDA viz. http //www.pmrda.-gov.in, the area including the cities of Pune and Pimpri-Chinchwad, the tehsils of Maval, Mulshi, Haveli and some parts of the talukas of Bhor, Daund, Shirur, Khed, Purandar and Velhe are covered under the Pune Metropolitan Region, which is one of the largest Metropolitan Regions in the country. The Government of Maharashtra established PMRDA to carefully plan the Development of Pune, the Industrial City of Pimpri-Chinchwad and the surrounding area of 7,357 sq.km. - Some major objectives of PMRDA are long-term planning, enforcing the development plans, providing for roads, water supply, sanitation, Metro Railways, necessary infrastructure and also stimulating economic development in the region. PMRDA is a body with constitutional rights responsible for the planned development of the metropolitan region. Therefore, the project viz. the Pune Metro Line 3 (Pune - Hingewadi) carried out under the aegis of PMRDA is definitely Metro Rail Project for urban public transport. The sponsoring authority in this case would be the concerned State Government in terms of 3F of the Table annexed to the Project Import Regulations and not PMRDA. The applicant has received the recommendation/sponsoring letter from the Maharashtra State Government which is the sponsoring authority for the subject project in terms of 3F of the Table annexed to the Project Import Regulations - the applicant can now register the said project and avail the concessional duty benefit under Project Import Regulations under the CTH 9801 with the recommendation/sponsoring letter for import of goods under concessional duty benefit as applicable under CTH 98.01 of the Customs Tariff Act dated 15-9-2022 from the Additional Chief Secretary, Urban Development Department, Government of Maharashtra for the subject project.

Summary

Issues:
1. Interpretation of Project Import Regulations, 1986 regarding sponsoring authority for a Metro Rail Project.
2. Eligibility of the applicant and Siemens Limited to avail concessional duty benefit under Customs Tariff Heading 9801 for a specific project.

Issue 1: Interpretation of Project Import Regulations, 1986 regarding sponsoring authority for a Metro Rail Project

The applicant sought an Advance Ruling on whether the project authority, Pune Metropolitan Rail Development Authority (PMRDA), qualifies as the sponsoring authority for a Metro Rail Project under the Project Import Regulations, 1986. The applicant argued that PMRDA should not be considered a separate sponsoring agency and that the concerned State Government should be the sponsoring authority for the project. The Authority analyzed the regulations and concluded that PMRDA falls under the category of Metro Rail Project for urban public transport, making the concerned State Government the sponsoring authority as per the regulations.

Issue 2: Eligibility of the applicant and Siemens Limited to avail concessional duty benefit under Customs Tariff Heading 9801 for a specific project

The applicant, Pune IT City Metro Rail Limited, along with Siemens Limited, sought clarification on their eligibility to register the project and avail concessional duty benefits under Customs Tariff Heading 9801 for the Pune Metro Line 3 (Pune - Hinjewadi) Metro Rail Project. The Authority examined the nature of the project, the involvement of PMRDA, and the sponsorship letter received from the Maharashtra State Government. It was established that the project fell under the category specified in the regulations, and the recommendation/sponsoring letter from the Additional Chief Secretary, Urban Development Department, Government of Maharashtra, confirmed the eligibility of the applicant to avail the concessional duty benefit under the Customs Tariff Act.

In conclusion, the Authority clarified that the concerned State Government, represented by the Maharashtra State Government, is the sponsoring authority for the Metro Rail Project, and the applicant is eligible to register the project and avail the concessional duty benefit under Customs Tariff Heading 9801 with the recommendation/sponsoring letter received. The judgment provides a detailed analysis of the regulations, project specifics, and the legal interpretation regarding the sponsoring authority for such projects, ensuring clarity for the applicant and Siemens Limited in availing the benefits under the relevant customs regulations.