Exemption for diesel engines supplied to educational organisations upheld under Notification No. 10/97-CE.

Diesel engines cleared to educational organisations against exemption certificates were treated as eligible for exemption under Notification No. 10/97-CE dated 01.03.1997. The dispute turned on whether such engines could be regarded as scientific and technical instruments, apparatus or equipment covered by the notification. The Tribunal applied its earlier precedent and held that the exemption was admissible, setting aside the denial of benefit to the assessee.

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Issues: Whether diesel engines cleared to educational organisations against exemption certificates were eligible for exemption under Notification No. 10/97-CE dated 01.03.1997.

Analysis: The dispute concerned denial of exemption on the footing that diesel engines were not scientific and technical instruments, apparatus or equipment covered by the notification. The Tribunal treated the controversy as already settled in favour of the assessee by its earlier decision following precedent that had extended similar exemption benefit to comparable equipment.

Conclusion: The exemption under Notification No. 10/97-CE dated 01.03.1997 was held admissible to the diesel engines cleared to educational organisations, and the denial of benefit was set aside in favour of the assessee.

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