Exemption for equipment supplied to a public funded research institution was allowed where notification conditions were satisfied.

Automatic scrubber drier supplied to a public funded research institution was held to fall within Notification No. 10/97-C.E. where the institution was under the Department of Space, the prescribed certificate confirmed coverage, and the goods were shown to be necessary for maintaining the required cleanliness standard in the liquid propulsion system centre. Since the notification conditions were satisfied, exemption was admissible and the denial of benefit and duty demand were set aside.

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Issues: Whether automatic scrubber drier supplied to a public funded research institution was eligible for the exemption under Notification No. 10/97-C.E. dated 01.03.1997.

Analysis: The institution was undisputedly a public funded research institution under the administrative control of the Department of Space. The prescribed certificate also confirmed that the goods were covered by the description in the notification. The goods were explained as necessary for maintaining the required standard of cleanliness in the liquid propulsion system centre. Since the conditions of the notification stood satisfied, the exemption could not be denied.

Conclusion: The exemption was admissible and the denial of benefit and duty demand were set aside.

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