Research-use goods and documentary evidence supported eligibility under the exemption notification and made the refund claim admissible.

Goods supplied to a laboratory were treated as eligible under Notification No. 10/97-C.E. because the invoice and the laboratory director's certificate showed use for research purposes, and the required certificate had been issued by the competent DRDO authority. The ledger account also indicated that the excise duty component had not been recovered from the purchaser, supporting the view that the duty burden was not passed on. On that evidence, the notification conditions were satisfied and the refund claim was admissible.

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Issues: Whether the goods supplied to the laboratory were covered by Notification No. 10/97-C.E. and whether the refund claim was admissible on the evidence produced.

Analysis: The invoice and certificate from the Director of the laboratory showed that the goods were required for research purposes and that the certificate contemplated by the notification had been issued by the competent DRDO authority. The ledger account further showed that the excise duty component had not been received from the purchaser, supporting the claim that the duty burden had not been passed on. On these facts, the requirements of the notification were satisfied and the refund could not be denied on the basis adopted by the lower authorities.

Conclusion: The refund claim was admissible and the appeal was allowed in favour of the assessee.

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