Broad construction of exemption notification covers diesel generating sets supplied to eligible educational and research institutions.

Diesel generating sets supplied to eligible educational and research institutions were treated as covered by Notification No. 10/97-C.E. because the term "equipment" was construed broadly, beyond the narrower expressions "scientific and technical instruments" and "apparatus". Valid exemption certificates were not in dispute, and prior Tribunal rulings on transformers, UPS systems and computers supported the functional inclusion of such goods within the notification. On that basis, diesel generating sets were held to qualify as eligible equipment and the exemption was allowed.

---

---

Issues: Whether diesel generating sets cleared to educational and research organisations were eligible for exemption under Notification No. 10/97-C.E. as scientific and technical instruments, apparatus or equipment.

Analysis: The exemption certificates issued by the competent authorities were not disputed. The only controversy was whether diesel generating sets fell within the expression used in the notification. The term "equipment" was treated as wider in ambit than the narrower expressions "scientific and technical instruments" or "apparatus". Reliance was also placed on earlier Tribunal decisions granting similar exemption to transformers and UPS systems. On that analogy, and since computers had also been treated as eligible equipment under the notification, diesel generating sets were held to be covered when supplied to eligible institutions against valid exemption certificates.

Conclusion: Diesel generating sets were held to be eligible equipment under Notification No. 10/97-C.E., and the exemption was allowed.

Ratio Decidendi: Where a notification extends exemption to scientific and technical instruments, apparatus and equipment, the wider term "equipment" may include goods that are not strictly scientific instruments if they are functionally covered by the notification and supplied against valid exemption certificates to eligible institutions.

---