Official use certificate controls exemption claim despite purchase order describing leased residential premises

Exemption under Notification No. 108/95-CE is available where the prescribed certificate from the concerned international organisation states that the goods are intended for official use. The presence of a purchase order describing split air-conditioners for leased residential premises does not, by itself, defeat the exemption when the authorised signatory has certified official use with knowledge of the transaction and the certificate specifically refers to the relevant order. The operative condition is satisfied by the certificate, and exemption cannot be denied solely on the basis of the purchase-order description.

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Issues: Whether the assessee was entitled to exemption under Notification No. 108/95-CE where the certificate issued by the authorised signatory stated that the goods were intended for official use of the World Bank, notwithstanding that the purchase order described the split air-conditioners as meant for leased residential premises.

Analysis: The notification required production of a certificate from the concerned international organisation stating that the goods were intended for official use. The assessee produced the certificate along with the purchase order. The certificate specifically referred to the relevant purchase order and certified that the split air-conditioners were intended for the official use of the World Bank. The purchase order showed use in leased residences, but that did not defeat the exemption once the authorised signatory, with knowledge of the transaction, certified official use. The statutory condition stood satisfied.

Conclusion: The assessee was entitled to the exemption under Notification No. 108/95-CE.

Ratio Decidendi: Where the prescribed certificate from the international organisation certifies official use, the exemption cannot be denied merely because the goods are to be used in leased residential premises.

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