Restricted-use exemption for telecom equipment failed where the record showed general plant communication use, not missile programme use.

Exemption under Notification No. 263/87-C.E. was available only to equipment and stores intended for use in the systems or sub-systems of the Integrated Guided Missile Development Programme. The certificate produced for the EPAX and push button telephones was found to be general and did not specifically establish the required restricted use. The record also showed that the EPAX lines were used for internal and external plant communication and general telephonic purposes, which did not satisfy the notification condition. The denial of exemption was therefore upheld.

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Issues: Whether the appellants were entitled to exemption under Notification No. 263/87-C.E. dated 10-12-1987 for EPAX and push button telephones on the ground that the equipment was intended for use in the systems or sub-systems of the Integrated Guided Missile Development Programme.

Analysis: The notification was confined to equipment and stores intended to be used for the systems or sub-systems of the Integrated Guided Missile Development Programme. The certificate produced by the appellants was found to be general in nature and did not clearly establish that the EPAX system was intended for such restricted use. The record also showed that the EPAX lines were used for internal and external plant communication and for general telephonic use, which did not satisfy the condition in the notification.

Conclusion: The appellants were not entitled to the benefit of the exemption notification, and the denial of exemption was upheld.

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