Research institution exemption under Notification No. 10/97-C.E. upheld for air-conditioning panels supplied for research use.

Exemption under Notification No. 10/97-C.E. was available for panel for air conditioners supplied to a DSIR-registered research institution because the notification applied to specified goods used for research by a public funded research institution, subject to certification of DSIR registration, non-commercial activity, and research use. The certificate on record showed the goods were essential for the research programme and that the institution was not engaged in commercial activity. Prior Tribunal rulings had also extended the notification to air-conditioning equipment supplied to DSIR-registered institutions. The Revenue's objection that the goods were not scientific and technical apparatus for research was rejected, and the exemption was upheld.

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Issues: Whether exemption under Notification No. 10/97-C.E. dated 01.03.1997 was available in respect of panel for air conditioners supplied to a DSIR-registered research institution.

Analysis: The notification granted exemption to specified goods supplied to a public funded research institution, subject to certification that the institution was registered with the Department of Scientific and Industrial Research, was not engaged in commercial activity, and that the goods were required for research purposes. The certificate on record showed that the goods were essential for the research programme and that the institution was not engaged in commercial activity. Prior Tribunal decisions had extended the benefit of the same notification where air-conditioning equipment was supplied to DSIR-registered institutions. The Revenue's objection that the goods were not scientific and technical apparatus for research was not accepted in light of the certificate and the applicable notification conditions.

Conclusion: The respondent was entitled to the exemption, and the Revenue's appeal was rejected.

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