Exemption for software unit furniture upheld where CT-3 certification and software-development use brought the goods within Notification No. 1/95-C.E.

Computer workstations and related furniture procured by a 100% export-oriented software unit under valid CT-3 certification were held to fall within the exemption for capital goods or office furniture under Notification No. 1/95-C.E. The Tribunal relied on departmental CT-3 clearance, STPI certification that the goods were necessary for software development, and its earlier rulings treating specially designed chairs, furniture and modular furniture as eligible office equipment. The later specific reference to computer furniture or workstations in Notification No. 40/2000-C.E. did not defeat entitlement under the wider earlier notification, so denial of exemption was unsustainable.

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Issues: Whether computer workstations and related furniture procured by a 100% export-oriented unit under CT-3 certificate were entitled to exemption under Notification No. 1/95-C.E. as capital goods or office furniture.

Analysis: The goods were procured under CT-3 certificate issued by the departmental officers and the Director of STPI certified that they were necessary for software development and covered by Notification No. 1/95. The Tribunal followed its earlier decisions holding that specially designed chairs, furniture and modular furniture obtained by software units under proper CT-3 certificates were eligible for exemption as office equipment. The later insertion of computer furniture or computer workstation in Notification No. 40/2000-C.E. did not defeat the claim, since the goods were already covered by the wider exemption available under Notification No. 1/95 for capital goods and office furniture.

Conclusion: The impugned goods were eligible for exemption under Notification No. 1/95-C.E. and the denial of benefit was unsustainable.

Ratio Decidendi: Goods procured by a 100% export-oriented software unit under valid CT-3 certification and certified as necessary for software development may qualify for exemption under the existing notification as capital goods or office furniture, even if a later notification specifically mentions such goods.

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