JUDGMENT

R.F. Nariman, J.

1. The facts necessary to decide this appeal are as follows. The appellant entered into a Joint Venture Agreement with M/s Shapoorji Pallonji & Company Limited for the purpose of construction of roads in the State of Andhra Pradesh. The Joint Venture was awarded a contract by the National Highways Authority of India for construction of roads as a part of the Golden Quadrilateral, Phase-2 Project in Andhra Pradesh.

2. Vide a notification dated 1.3.2001, in exercise of powers under Section 25(1) of the Customs Act, certain items were exempted from payment of customs duty and additional duty leviable under the Customs Tariff Act. We are concerned with serial No.217 of this notification which reads as follows:

"217. 84 or any other Goods specified in List 11 Nil

Nil 38

Chapter required for construction

of roads."

The conditions by which the exemption is attracted is set out in item 38 as follows:

“38. If, -

(a) the goods are imported by –

(i) the Ministry of Surface Transport, or

(ii) a person who has been awarded a contract for the construction of roads in India by or on behalf of the Ministry of Surface Transport, by the National Hi