Madras HC rules that import date, not purchase order, determines eligibility for project import duty benefits under Section 18A.
Importation Date Governs Project Import Benefits
The Madras High Court ruled that eligibility for project import duty benefits under Section 18A of the Customs Act must be determined by the actual date of importation, not the date of purchase order or contract. The dispute involved the duty-free import of capital goods under an Advance Authorization scheme.
The petitioner had placed purchase orders prior to project registration but imported goods after registration. The HC allowed revision of bills of entry for two consignments imported post-registration, permitting benefit claims. However, it denied relief for three earlier imports, holding that benefits cannot be backdated to pre-registration purchase orders.
This clarification prevents manipulation of transaction timelines to claim retrospective benefits. Practitioners must advise clients to align import schedules strictly with authorization validity. The ruling emphasizes the legislative intent to incentivize timely project execution, not retrospective structuring.