Exemption for technical equipment extended to lathe machines supplied to specified research and teaching institutions.

Lathe machines supplied to specified institutions were treated as "equipment" under Notification No. 10/97, because the exemption covered specified goods supplied to designated institutions and the prescribed conditions were met. The deciding question was whether a lathe machine fell within that expression; it was regarded as technical equipment in the context of supply to a research centre and a teaching institution, and the exemption from excise duty was available.

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Issues: Whether lathe machines supplied to specified institutions were covered as equipment under Notification No. 10/97 dated 01.03.1997 and entitled to exemption from excise duty.

Analysis: The notification granted exemption to specified goods, including components and technical instruments, apparatus and equipment, when supplied to designated institutions, subject to the prescribed conditions. The institutions concerned satisfied the notification requirements and the conditions were undisputedly met. The only question was whether a lathe machine could be treated as equipment within the notification. The machine was held to be a technical equipment, especially in the context of supply to a research centre and a teaching institution, and therefore within the ambit of the exemption.

Conclusion: The lathe machine qualified as equipment under the notification and the assessee was entitled to exemption from duty.

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