2011 (3) TMI 343 - AT - Central Excise

Tribunal affirms exemption for 'Panel for Air Conditioners' supplied to R&D institution

The Tribunal upheld the impugned order, ruling that the 'Panel for Air Conditioners' supplied to a registered R&D institution qualified for exemption ... Benefit of Notification No. 10/97-C.E., dated 11-3-1997 - Whether the respondent are entitled for exemption under Notification No. 10/97, dated 1-3-1997 in respect of ‘panel for air conditioners’ supplied by them to their buyer which is registered with the Department of Scientific and Industrial Research or not - Held that:- as per the decisions of the Tribunal in the case of Godrej Appliances Ltd. v. Commissioner of Central Excise,[2008 (2) TMI 393 - CESTAT AHMEDABAD]wherein air conditioners were supplied to the buyers which were registered with the Department of Scientific and Industrial Research and benefit of the notification was allowed. In this case, we find that the respondent complied with the conditions of the Notification No. 10/97-C.E., dated 11-3-1997 - Decided in favour of assessee. Issues:Exemption under Notification No. 10/97-C.E. for 'Panel for Air Conditioners' supplied to an R&D institution.Analysis:The appeal revolved around the entitlement of the respondent for exemption under Notification No. 10/97-C.E. for supplying 'Panel for Air Conditioners' to a registered R&D institution. The key question was whether the goods qualified as scientific and technical apparatus for research purposes. The Notification required the institution to be public funded, registered with the Department of Scientific and Industrial Research, and certified not engaged in commercial activity. The respondent provided the necessary certificate indicating the essentiality of the goods for research programs and the non-commercial nature of the institution.The Tribunal examined past decisions where similar goods were supplied to registered buyers, and the benefit of the notification was allowed. Comparing these precedents with the current case, it was found that the respondent met all the conditions stipulated in the Notification. The Tribunal upheld the impugned order, noting that the 'Panel for Air Conditioners' qualified for the exemption under Notification No. 10/97-C.E. The appeal by the Revenue was consequently rejected.Overall, the judgment clarified the interpretation and application of the Notification, emphasizing the importance of meeting the specified criteria for exemption eligibility. The decision underscored the need for goods to serve scientific and research purposes when claiming such exemptions, as demonstrated by the essentiality of the supplied panels for the R&D institution's programs.