Exemption for lathe machines under Notification No. 10/97 upheld on binding prior ratio for the same goods.

Lathe machines were treated as eligible for exemption under Notification No. 10/97 dated 1-3-97 when considered as scientific or technical instruments, apparatus or equipment for Defence Research and Development Laboratory, Hyderabad. The Tribunal applied the earlier binding ratio on the same notification and the same goods, and held that the prior decision governed the issue. On that basis, the exemption claim was accepted and the adverse order was set aside in favour of the assessee.

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Issues: Whether lathe machines were entitled to exemption under Notification No. 10/97 dated 1-3-97 as scientific and technical instruments, apparatus or equipment for Defence Research and Development Laboratory, Hyderabad.

Analysis: The dispute turned on the scope of the exemption notification and whether lathe machines could be treated as scientific or technical instruments, apparatus or equipment. The Tribunal noted that the very same issue had already been decided in favour of the assessee in an earlier order, where lathe machines were held to be eligible for the benefit of the notification. Following that earlier ratio, the Tribunal accepted the assessee's claim.

Conclusion: The lathe machines were held eligible for exemption under Notification No. 10/97 dated 1-3-97, and the impugned order was set aside in favour of the assessee.

Ratio Decidendi: Where an item is covered by the terms of an exemption notification and the issue has already been decided on the same notification and goods, the earlier binding ratio governs and exemption is to be granted accordingly.

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