Security system exemption applied where the goods were found, in substance, to be a complete security system.

The item procured was treated as a security system in substance rather than merely a component, after examining its functioning and the material on record. On that factual basis, the Tribunal rejected the departmental view that the item was only part of a security system and held that the relevant serial entry in Notification No. 22/2003-C.E. dated 31-3-2003 applied. The exemption benefit was therefore available to the appellants.

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Issues: Whether the item procured by the appellants was a security system eligible for exemption under Notification No. 22/2003-C.E. dated 31-3-2003.

Analysis: The Tribunal examined the functioning of the system and the material placed before it and found that the item procured was, in substance, a security system. The departmental view that it was only a part of a security system was rejected on the facts and the notification benefit available to the relevant serial entry was considered applicable.

Conclusion: The appellants were entitled to the exemption under Notification No. 22/2003-C.E. dated 31-3-2003.

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