Consumables exemption for research supplies upheld where material was ultimately used in rockets and certification was produced

Ammonium chloride supplied to a specified public funded research institution was treated as a consumable under Notification No. 10/97-C.E. because it was ultimately consumed in solid propellant rockets used for research, and the prescribed certificate had been produced. On those facts, the exemption condition was satisfied and duty relief was admissible. The Revenue's restrictive ejusdem generis argument was not accepted in this setting, as the notification's purpose covered the supply of such material to the research institution for scientific use.

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Issues: Whether ammonium chloride supplied to VSSC and ultimately used in solid propellant rockets for research purposes qualified as "consumables" under Notification No. 10/97-C.E. dated 01.03.1997 and was therefore eligible for exemption from duty.

Analysis: The relevant notification covered scientific and technical instruments, apparatus, equipment, accessories, spare parts and consumables supplied to specified public funded research institutions, subject to production of the prescribed certificate. The goods were cleared to VSSC against the required certificate, and the material was not merely used in an intermediate process but was ultimately consumed in solid propellant rockets used for research. The purpose of the notification was satisfied on these facts, and there was no basis to deny the exemption. The Revenue's restrictive reading based on ejusdem generis was not accepted in the factual setting of the case.

Conclusion: The goods were covered by the notification and the exemption was admissible to the assessee.

Ratio Decidendi: Where goods supplied to a specified research institution are ultimately consumed in equipment used for research and the prescribed certification condition is satisfied, they fall within the expression "consumables" under the exemption notification.

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