ZUARI INDUSTRIES LTD. vs COMMNR. OF CENTRAL EXCISE & CUSTOMS

The Supreme Court ruled that the exemption under Notification No. 11/1997 for customs duty is applicable only to goods directly related to fertilizer projects, and not to ancillary projects like a Captive Power Plant. The Court held that the 6 MW Captive Power Plant imported by Zuari Industries Ltd. did not qualify for the nil rate of duty as it was deemed a separate project under the Customs Act, 1962. Consequently, the appeal was dismissed, affirming the lower authorities' decisions regarding the duty applicability.