Appellants eligible for exemption supplying transformers to institute under Department of Atomic Energy

The Tribunal held that the appellants were eligible for the benefit of exemption under the Department of Revenue Notification for supplying transformers to an institute under the Department of Atomic Energy's control. Despite initial denial due to missing manufacturer's name in the certificate, the Tribunal found the institute's certification and evidence of actual use justified granting the exemption. The orders denying the benefit were set aside, and the appellants were directed to be granted the exemption.

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Issues involved: Denial of benefit of notification on supply of transformer to Institution for Plasma Research Gandhinagar u/s Department of Revenue Notification No. 10/97 (CEX), dated 1-3-97.

Summary:
The appellants were aggrieved by the denial of benefit of notification on the supply of transformers to an institute under the administrative control of Department of Atomic Energy. The institute provided certificates confirming its eligibility for excise duty exemption under the said notification. Despite no objections raised by Revenue on previous supplies, a Show Cause Notice was issued alleging that transformers were not covered by the notification and that certain goods were removed without levy of duty. The Additional Commissioner held that transformers fell under the exemption provisions but denied the benefit due to the certificate not mentioning the manufacturer's name. However, the Tribunal found that the institute's certification for research purposes, along with evidence of actual receipt and use of the transformers, justified granting the exemption. The Tribunal emphasized that the intended use and actual use after receipt at the institute made the appellants eligible for the benefit of exemption. Consequently, the orders denying the benefit were set aside, and the appellants were directed to be granted the exemption in this case.

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