2011 (8) TMI 775 - AT - Central Excise

Notification No. 10/97 - Revenue argued product manufactured by the respondents are neither scientific and technical instruments, apparatus or equipment nor accessories/spare parts thereof - Appellant furnished the certificates issued by the Deputy Secretary, Department of Atomic Energy and Registrar of I.I.T, Delhi stating that the said goods are required for research purposes only - Held That - As the certificates have been issued by appropriate authorities respondents are eligible for exemption.

Summary

Issues:
Whether the respondents are entitled to claim the benefit under Notification No. 10/97 dated 01.03.1997 for Scientific and Technical instrument, apparatus, equipment, and accessories/spare parts supplied to specific research institutions.

Analysis:
The appeal was filed by the Revenue against the order-in-appeal dated 25.09.2003. The case involved M/s. R.K. Control Instruments Pvt. Ltd., manufacturers of Control Valve and accessories under Chapter No. 84 of the Central Excise Tariff Act, 1985. The respondents filed classification declarations and certificates from relevant authorities stating the goods were for research purposes only. Show-cause notices were issued, but dropped by the Asst. Commissioner based on the certificates. The Revenue appealed to the Commissioner (Appeals), who upheld the order-in-original. The Revenue then appealed to the Tribunal.

The Revenue argued that the goods used for regulating the flow of gases/liquids did not qualify as Scientific and Technical instruments, apparatus, or equipment under Notification No. 10/97. The respondents' advocate countered that the duty exemption was available with the required certificates from authorities, which were submitted in this case. The certificates clarified the goods were for research purposes only, making the respondents eligible for the exemption.

After considering both sides, the Tribunal found that the issue revolved around the entitlement of the respondents under Notification No. 10/97 for supplying goods to specific research institutions. The certificates provided by the appropriate authorities clearly stated the goods were for research purposes only. The Tribunal held that the respondents were eligible for the exemption based on these certificates, upholding the order-in-appeal and dismissing the Revenue's appeal.

In conclusion, the Tribunal ruled in favor of the respondents, emphasizing the importance of the certificates issued by relevant authorities to establish the eligibility for duty exemption under Notification No. 10/97 for goods supplied to specific research institutions.