Educational training exemption applies to student-assembled computers when production occurs as part of technical instruction.

Notification No. 167/71-C.E. exempted excisable goods produced in an educational institution when production occurred during imparting technical, academic or vocational training, or during experiments or research. Computers assembled in a college with student participation and for study purposes were found to have been made as part of the training process, not outside it. The exemption was therefore applicable, and denial of the notification benefit was unsustainable.

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Issues: Whether the benefit of Notification No. 167/71-C.E. dated 11-9-1971 was available to computers assembled in an educational institution during the course of imparting technical training.

Analysis: The notification exempted excisable goods produced in an educational institution when such production took place during the course of imparting technical, academic or vocational training, or while carrying out experiments or research. The evidence on record did not show that the computers were assembled outside the training process. On the contrary, the statements of the teaching staff and the college manager indicated that the computers were assembled with the assistance of students and for study purposes, supporting the conclusion that the activity occurred during imparting of training.

Conclusion: The benefit of the notification was rightly extended and the denial of exemption was unsustainable.

Ratio Decidendi: Where excisable goods are assembled in an educational institution with student participation as part of training for study purposes, the exemption for production during the course of imparting technical training is applicable.

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