In re Pune IT City Metro Rail Limited (CAAR Mumbai)
The applicant has sought an Advance Ruling on whether the applicant and Siemens Limited can register the said ‘Project’ and avail the concessional duty benefit under Project Import Regulations under the CTH 9801 with recommendation / sponsoring letter issued by the PMRDA.
In this regard I find 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. On the 31st of March 2015 the Urban Development department of Maharashtra established PMRDA as an independent Autonomous body. 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.
Having said that during the course of hearing the applicant submitted that they have now received a Recommendation/ Sponsoring letter for import of goods under concessional duty benefit as applicable under CTH 98.01 of the Customs Tariff Act dated 15.09.2022 from the Additional Chief Secretary, Urban Development Department, Government of Maharashtra for the subject project. They also submitted a copy of the said letter during the hearing.
I find that 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.
Therefore, 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 15.09.2022 from the Additional Chief Secretary, Urban Development Department, Government of Maharashtra for the subject project.
FULL TEXT OF THE ORDER OF CUSTOMS AUTHORITY FOR ADVANCE RULING, MUMBAI
Pune IT City Metro Rail Limited (hereinafter referred as the applicant), having its address at 9th Floor,”Vikram Monarch”, CTS No 1115/A, Ganeshkind Road, Shivajinagar, Pune, Maharashtra, India -411016 have sought an Advance Ruling on a Project Import proposed to be carried out by them.
2. The applicant made the following submissions:
2.1. The Project authority in the said case is Pune Metropolitan Rail Development Authority (PMRDA).
2.2. PMRDA is an independent Autonomous body of Government of Maharashtra. 2.3. PMRDA is setting up a dedicated Pune Metro Line 3 (Pune — Hinjewadi).
2.4. The applicant, i.e. Pune IT City Metro Rail Corporation is a special purpose vehicle formed among PMRDA, Siemens GMBH and Tata Projects to design, build, finance, operate and transfer the operations to the beneficiary.
2.5. Siemens Limited is one of the contractual suppliers to the applicant for supplies of imported goods towards the Pune Metro Line 3 (Pune — Hingewadi) Metro Rail Project. Hence applicant has authorised Siemens Ltd to represent this case before the Advance Ruling Authority.
2.6. The applicant has received a Recommendation/ Sponsoring letter from the Project Authority viz. PMRDA for the import of goods as per “Annexure 1” under the concessional rate of duty benefit.
2.7. The Sponsorship letter has been issued by “The Metropolitan Commissioner” of PMRDA.
2.8. In terms of Regulation 3 — Definitions, of Project Import regulations 1986 point (b) defines “Sponsoring Authority” as an authority specified in the table annexed of these regulations. The list of Sponsoring Authorities for the Metro Rail or Monorail projects is as follows:-
