2009 (10) TMI 945 - AT - Central Excise

Summary

Issues involved: Determination of eligibility for exemption under Notification No.10/97-CE for Uninterrupted Power Supply System (UPSS) supplied to research institutes.

Summary:
The case involved appeals related to the denial of exemption under Notification No.10/97-CE for the UPSS supplied by the assessee to research institutes. The original authority confirmed duty demands and imposed penalties, which were modified by the Commissioner (Appeals) to allow some benefits. The main issue was whether the UPSS qualified for the exemption under the said notification.

Upon hearing both sides and examining the records, it was found that the UPSS provided by the assessee to research units could be considered as accessories of computers or equipment, as per the literature presented. The Tribunal noted that the UPSS served to protect equipment from various electrical perils, aligning with the description under the exemption notification for scientific and technical instruments and equipment. Therefore, the Tribunal concluded that the UPSS fell under the category specified in the notification and should be eligible for the exemption.

Consequently, the appeal filed by the Revenue was dismissed, while the appeals filed by the assessee were allowed, affirming the eligibility of the UPSS for the exemption under Notification No.10/97-CE.

*(Operative part of the order was pronounced in open court on 29.10.09)*