Exemption for unit run canteen sales cannot be denied merely because others were the ultimate beneficiaries.

Sales of mixies to a unit run canteen qualified for exemption under G.O.P. No. 3125 dated 30.12.1964 because the invoices were issued to the Government of India, Ministry of Defence, Women's Welfare Association Unit Run Canteen, and the goods were ordered, received and paid for by that unit. The Court treated the fact that association members were the ultimate beneficiaries as immaterial. Once the purchaser and transaction satisfied the exemption conditions, the benefit could not be denied on the basis of end-use or the identity of the final users, and the denial of exemption was unsustainable.

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Issues: Whether the assessee was entitled to exemption on sales of mixies made to the unit run canteen under G.O.P. No. 3125 dated 30.12.1964.

Analysis: The sales invoices were issued in the name of the Government of India, Ministry of Defence, Women's Welfare Association Unit Run Canteen, and the goods were ordered, received, and paid for by that unit. The Tribunal's focus on the fact that the association's members were the ultimate beneficiaries was held to be immaterial. Once the terms of the Government order were satisfied, the exemption could not be denied on the basis of the end-use or ultimate beneficiaries.

Conclusion: The assessee was entitled to the benefit of G.O.P. No. 3125 dated 30.12.1964, and the denial of exemption was unsustainable.

Ratio Decidendi: Where the purchaser and transaction satisfy the conditions of an exemption order, the exemption cannot be refused merely because another group is the ultimate beneficiary.

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