Concessional duty on air-conditioners applied to microwave telecommunication stations covered by the relevant exemption notification.

Notification No. 56/78 extended concessional duty on room air-conditioners used in specified establishments, including factories, telephone exchanges, electricity load despatch centres, thermal and hydel power stations, subject to the prescribed undertaking and Chapter X procedure. Microwave telecommunication stations were treated as covered because they were not mere extensions of power stations and were functionally akin to telephone exchanges, which were expressly listed. As the air-conditioners had been cleared under CT-2 certificates and installed in accordance with the procedure, the concessional rate of duty applied.

---

---

Issues: Whether microwave telecommunication stations fall within the establishments specified in Notification No. 56/78 dated 1-3-1978 so as to qualify for concessional duty on room air-conditioners.

Analysis: The notification granted exemption to air-conditioners used in specified establishments, including factories, telephone exchanges, electricity load despatch centres, thermal and hydel power stations, subject to the prescribed undertaking and Chapter X procedure. The Department's contention was that microwave stations were not extensions of power stations and were not covered by the notification. The Tribunal found that the special nature of electricity generation and transmission made power stations clearly covered, and that the microwave telecommunication centres were not extensions of power stations but were akin to telephone exchanges, which were expressly included in the schedule. The air-conditioners had been cleared under CT-2 certificates and installed in the microwave stations in accordance with the prescribed procedure.

Conclusion: Microwave telecommunication stations were covered by the notification, and the respondents were entitled to the concessional rate of duty. The Department's appeal failed.

---