Research-purpose goods exemption applied where certified supplies to specified institutions satisfied the notification conditions.

Goods cleared to specified institutions for research purposes were held to fall within the exemption under Notification No. 10/97-C.E. because the record showed valid certification from competent authorities and the goods were required for research use. The notification covered scientific and technical instruments, apparatus, equipment and accessories supplied to specified institutions, and prior Tribunal rulings supported exemption where the research-purpose condition was met even in an industrial setting. On that basis, the exemption applied and the demand was not sustainable.

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Issues: Whether the goods supplied to specified institutions for research purposes were entitled to exemption under Notification No. 10/97-C.E. dated 1-3-1997 as scientific and technical instruments, apparatus, equipment or accessories thereof.

Analysis: The goods were cleared to specified institutions and the record showed that they were required for research purposes under certificates issued by the competent authorities. The Notification extended exemption to scientific and technical instruments, apparatus, equipment and accessories cleared to specified institutions. Prior Tribunal decisions had held that goods supplied for research use under proper certification fall within the scope of the Notification, even where the goods are otherwise used in an industrial setting, so long as the research-purpose condition is satisfied.

Conclusion: The goods were covered by the Notification and the demand was not sustainable.

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