Of course Nitrous has shadows. It doesn't deal with alpha/transparency very well, but shadows are certainly there. Have you used max at all since 2012?
That's because it's a 2048 texture reduced to something smaller than 512, especially considering all the detail from the normal map are tiny things such as roof tiling.
That's a Max issue, not CAT, some people say it works, other say it doesn't. Personally, the latest SP in 2012 actually fixed certain corruption issues.