9911796707
TMI Blog2019 (5) TMI 41X X X X Extracts X X X X X X X X Extracts X X X X ..... EXCISE, VAPI [ 2008 (2) TMI 393 - CESTAT AHMEDABAD] , this exemption notification has been interpreted by the Tribunal to cover the equipment supplied to scientific and research institutions for the purpose of scientific research whether or not such goods fall under chapter 90. In the present case, CNC machines and other equipment which have been manufactured are no doubt meant for and supplied to scientific institutions for their research and we find no reason to hold that these cannot be called scientific and technical equipment within the meaning of the notification 10/1997-CE. We, therefore, find that the assessee is entitled to the benefit of exemption notification 10/1997-CE on merits. Time Limitation - HELD THAT:- When the assessee has been audited regularly and has not clandestinely removed any goods and has supplied all goods to Government research institutions. The appellants are themselves Public Sector Undertaking and the department has made no case whatsoever to allege that there was fraud, collusion, wilful misstatement or suppression of facts with an intent to evade payment of duty on behalf of the appellant - the extended period of limitation is wrongly invoke ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (1) (2) (3) (4) 1 Public funded research institution or a university or an Indian Institute of Technology or Indian Institute of Science, Bangalore or a Regional Engineering College, other than a hospital (a) Scientific and technical instruments, apparatus, equipment (including computers); (b) accessories and spare parts of goods specified in (a) above and consumables; (c) Computer software, Compact Disc-Read Only Memory (CD-ROM), recorded magnetic tapes, microfilms, microfiches. (d) Prototypes i) If the institution (a) is a public funded research institution under the administrative control of the Department of Space or Department of Atomic Energy or the Defence Research Development Organization of the Government of India and produces a certificate to that effect from an officer not below the rank of a Deputy Secretary to the Government of India in the concerned department to the manufactu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on does not restrict the goods to any chapter heading. Therefore, they are entitled to the benefit of exemption notification regardless of which chapter their goods fall under, as long as they meet the description of the goods in question. It is also not in dispute that they are a Public Sector Undertaking and that they have supplied all these machines/ equipment to scientific organisations such as BARC, ISRO, etc. For instance if CNC vertical turning and boring machines are supplied, they are supplied as per specific requirement of the scientific organisation with +/- 10 micron accuracy which is required for their scientific purposes. Similarly, the rotary table sold by them is a part of the machines for accurate positioning of components to be machined without any jerks. This is an essential requirement for machining hazardous material like solid propellant or rocket motors. The base plates manufactured by them are also a part of CNC machines meant for prototyping of critical R D equipments. The cradle assembly is designed to facilitate operations in radio active or critical environment in nuclear research lab. Similarly, the other equipments are also used for specific research ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sserts that the demand invoking extended period of limitation was correctly invoked and the demand along with interest is correctly confirmed and the penalties were rightly imposed. 11. We have considered the arguments on both sides and perused the records. The issue to be decided is whether or not appellant is entitled to the benefit of the exemption notification 10/1997-CE in respect of the CNC machines and other goods which were supplied by them to various scientific and research institutions such as ISRO, BARC, etc. It is not in dispute that these goods were supplied to research institutions. There is nothing on record to show that the buyers were using these goods for anything other than scientific and technical research in which they are engaged. The main contention of the department is that the goods which are cleared fall under chapter 84 being CNC machines and parts and they are not scientific equipment falling under chapter 90 of Central Excise Tariff. A plain reading of the exemption notification would show that unlike some other notifications, this notification did not restrict the benefit to goods falling under chapter heading. Therefore, regardless of ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
