2010 (10) TMI 179 - AT - Central Excise

Computer assembled in Collage of Engineering and Technology Exemption - computers were assembled along with the assistance of students and this clearly show that the assembly of the computers was done at the time of imparting of training to the students - benefit of the notification available

Summary

Issues:
Benefit of Notification No. 167/71-C.E. to computers assembled in an educational institution.

Analysis:
The issue in this case revolves around the denial of the benefit of Notification No. 167/71-C.E. to computers assembled in an educational institution. The Revenue contended that the benefit should be denied as the computers were assembled by technicians (college lecturers) and not during the course of imparting training. However, the Notification allows the benefit if excisable goods are produced during the course of imparting technical training or carrying out experiments or research in an educational institution.

The Tribunal noted that there was no evidence on record to suggest that the assembly of the computers did not occur during the training of college students. In fact, a teaching staff member and the college manager confirmed that the computers were assembled with the assistance of students, indicating that the assembly took place during the training sessions. As a result, the Tribunal found no reason to interfere with the Commissioner (Appeals) order, which had granted the benefit of the notification. Consequently, the Tribunal upheld the impugned order and dismissed the appeal by the Revenue. Additionally, the cross-objection filed by the respondents was also dismissed as it was a response to the Revenue's appeal.

In conclusion, the Tribunal ruled in favor of the educational institution, affirming their entitlement to the benefit of Notification No. 167/71-C.E. for the computers assembled during the training activities. The decision was based on the evidence provided by the teaching staff and college manager, which demonstrated that the assembly of computers occurred in conjunction with the training of students, meeting the criteria set forth in the Notification.