Exemption for DRDO research supplies upheld on identical precedent; demand found unsustainable.

Exemption under Notification No. 10/97-CE was held available for goods supplied to DRDO for weapon-related research, because an earlier final order of the same Bench had already construed the notification in the assessee's favour on the same issue. The present dispute involved identical goods, the same end use, and the same legal question for a different period, and the earlier view was followed as binding precedent since it had not been shown to have been overturned or not accepted by the Department. The exemption was therefore available and the demand was unsustainable.

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Issues: Whether the assessee was entitled to exemption under Notification No. 10/97-CE dated 01/03/1997 in respect of goods supplied to DRDO for weapon-related research.

Analysis: The dispute was covered by an earlier final order of the same Bench in respect of the same assessee, where the notification was construed and the exemption was held available for goods supplied to DRDO for weapon-related research. The present appeals involved identical goods, identical purpose of supply, and the same legal issue for a different period. As the earlier decision had not been shown to have been upset or not accepted by the Department, it was followed as precedent.

Conclusion: The assessee was entitled to the exemption and the demands were unsustainable.

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