Exemption for research-institution supplies upheld where certified accessories or spare parts satisfy the notification conditions.

Tubular iron goods supplied to a research institution were treated as eligible accessories or spare parts of scientific and technical instruments under Notification No. 10/97-C.E. because the prescribed certificate and other exemption conditions were satisfied. The institution's certification that the goods were required for research use was accepted as sufficient, and the Revenue's contrary view on classification was not accepted. Goods falling within the notification cannot be denied exemption merely because the department disputes their description when the statutory requirements and institutional certification are in place.

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Issues: Whether tubes, pipes and hollow profiles of seamless iron supplied to a research institution could be treated as accessories or spare parts of scientific and technical instruments, apparatus or equipment so as to qualify for exemption under Notification No. 10/97-C.E. dated 01.03.97.

Analysis: The prescribed conditions in the notification stood satisfied, including production of the requisite certificate from the head of the institution countersigned by the Deputy Secretary of the concerned Ministry. The only dispute was whether the supplied goods answered the description of accessories or spare parts of scientific and technical instruments, apparatus or equipment. The certificate issued by the institution, supported by the statutory conditions, was accepted as sufficient, and the cases relied upon by the Revenue were distinguished because they concerned goods which were plainly not accessories or spare parts of such instruments or equipment.

Conclusion: The goods were eligible for the exemption. The Revenue's appeal had no merit and was dismissed.

Final Conclusion: The exemption claimed by the assessee was upheld, and the denial of benefit under the notification was set aside.

Ratio Decidendi: Where the conditions of an exemption notification are fulfilled and the consignee institution certifies that the goods are required as accessories or spare parts for scientific and technical instruments used for research, the benefit cannot be denied merely on a contrary departmental view of the description of the goods.

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