2008 (2) TMI 393 - AT - Central Excise

Benefit of Notification No. 10/97-CE stands denied to the appellants in respect of air-conditioners manufactured by them and supplied to various Public Funded Research Institution on the ground that air-conditioners cannot be considered as scientific and technical equipment - there is no definition of scientific and technical instrument in the notification so as to restrict the scope of the same relatable to the use of the goods - Revenue has not been able to show any evidence on record as to why the air-conditioner which is scientific and technical instrument should be denied the benefit of Notification

Summary

Issues:
Denial of benefit under Notification No. 10/97-CE to appellants for air-conditioners supplied to Public Funded Research Institutions.

Analysis:
The judgment revolves around the denial of the benefit of Notification No. 10/97-CE to the appellants concerning air-conditioners supplied to Public Funded Research Institutions. The issue at hand is whether air-conditioners can be considered as scientific and technical equipment under the said notification. The Tribunal noted that the exemption is available for scientific and technical instruments, apparatus, and equipment when supplied to public funded research institutions or universities, as per the notification. The department did not dispute that the buyers were registered with the Department of Scientific and Industrial Research for availing Central Excise exemption under the notification. The dispute primarily centered on the nature of the goods supplied to them.

The Tribunal referred to previous cases where transformers were considered as scientific and technical instruments by the Tribunal. It was highlighted that there is no specific definition of scientific and technical instruments in the notification to restrict their scope based on the use of the goods. The Tribunal emphasized that transformers supplied to such institutions were categorized as scientific and technical instruments. In this context, the Tribunal found that the Revenue failed to provide any evidence as to why air-conditioners, also being scientific and technical instruments, should be denied the benefit of the Notification.

Based on the above analysis and following the precedent set by previous decisions, the Tribunal set aside the impugned order and allowed the appeal with consequential relief to the appellant. The judgment underscores the importance of interpreting the scope of scientific and technical instruments broadly within the context of relevant notifications to ensure consistency and fairness in granting exemptions to eligible parties.