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TMI Blog2005 (1) TMI 495X X X X Extracts X X X X X X X X Extracts X X X X ..... t appellant or MGIT for short). They imported Computer Systems on 10-3-2000 and on 7-7-2000 free of duty claiming the benefit of exemption Notification No. 51/96-Cus., dated 23-7-1996 on the basis of Essentiality Certificate issued by Jawaharlal Nehru Technological Institute (JNTU), Hyderabad. The Revenue conducted investigation and came to the conclusion that the appellant was not entitled to the benefit of exemption as the Essentiality Certificate had been obtained fraudulently with intend to evade payment of duty. It was further alleged that the appellant was not registered with the Department of Scientific and Industrial Research (DSIR) and also failed to comply with the conditions of the notification and the criteria laid down in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In fact, some of the faculty members have registered for their Ph.D. in other Universities. At the time of the import of the Computer System, the Essentiality Certificate was available. Its subsequent cancellation cannot be a reason for denying the benefit of the notification. In the light of the Government of India clarification, it is not necessary that the appellant s institute should be registered with DSIR. It is sufficient that the University which issued the Essentiality Certificate is registered with the DSIR. In any case, there is absolutely no justification for invoking the extended period in demanding duty and imposition of fine and penalty. Further it was submitted that the Essentiality Certificate was withdrawn by the Registra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e DS-10 Alpha Server Computer System with accessories of Compaq USA. The Original Authority denied the exemption, even though the Essentiality Certificate issued by the Registrar of Andhra University was produced. The Commissioner (Appeals) also upheld the view of the Original Authority that in order to get the benefit of exemption notification, the institute itself should be registered with the DSIR and it is not sufficient that the University to which the institution is affiliated, is registered with DSIR. The appellant stated that the issue is fully settled in favour of the appellant in as much as the C.B.E. C has clarified vide Circular No. 28/2004-Cus., dated 6-4-2004 that the benefit of notification No. 51/96-Cus., dated 23-7-1996 i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te issued by the University to which the said college or educational institutions is affiliated, on case to case basis, provided that the said University falls under the eligible category of importers under the said Notification. Hence in the first appellant s case, if JNTU, registered with the DSIR, has issued Essentiality Certificate, there is no point in denying the benefit of the exemption on the ground that the institute itself is not affiliated with the DSIR. The notification should be implemented in the light of the clarification issued by the Ministry. One should not ignore the clarifications issued by the Government while interpreting a notification and deny the benefit by adopting a literal interpretation. This is what the Reve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 63 JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY KUKATPALLY, HYDERABAD - 500 072 Lr. No Dl/505/2002-2003 Date : 26-6-2002 DR. P. RAM REDDY REGISTRAR To The Principals, All Affiliated Colleges Sir, Sub. : JNT University, Hyderabad - Academic Planning - Import/Purchase of Equipment under duty free notification 51/96-facilities withdrawn - reg. Ref. : 1. DSIR Lr. No. TU/V/RG-CDE/96, dated 28-10-98 2. Lr. No. SG/Ref/38/2001/Cus. SIIB, dated 24-6-2002 of the Commissioner of Customs Central Excise, Hyderabad. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s (Mechanical Engineering). We have seen the list of the projects carried out by them. Therefore, the imported equipments cannot be said to have been misutilised. In fact they have been utilised only for the research purposes. In view of the above findings, the Order-in-Original in respect of the first appellant, MGIT, cannot be sustained and the same is set aside. As regards the second appellant, GITAM, in view of the clarification given by the Ministry of Finance which has been quoted earlier, they are also entitled to the benefit of exemption notification since the University which gave the Essentiality Certificate is Registered with the DSIR. 8. In view of the above findings, both the appeals are allowed. - - TaxTMI - TMITax - Cus ..... X X X X Extracts X X X X X X X X Extracts X X X X
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