Summary
- The Madras High Court has partly allowed Vatech Wabag Limited's challenge against customs proceedings, determining that the purchase order date cannot dictate importation status for project import benefits.
- The court ruled that goods imported after the registration of a project contract on 05.06.2025 are eligible for assessment under Heading 98.01 of the Customs Tariff Act, 1975.
- Importation is defined by the actual arrival of goods in India, not merely by placing a purchase order, as clarified in Garden Silk Mills Ltd. v. Union of India.
- This ruling could reshape how project imports are assessed and may lead to significant duty refunds for eligible consignments moving forward.
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