CLEARANCE TO R & D UNIT

[SURYAKANT MITHBAVKAR]

We are manufacture of Pharmaceutical machinery. Our one of customer having R & D unit registered with Department of Scientific & Industrial Research. He has submitted copy of registration certificate alongwith undertaking in prescribed format as per condition laid in Notification No.10/97 dt.01.03.97.

Can we clear goods to them without charging excise duty on basis of the above document or we have to follow other procedure.

Pl. advice

AI Summary

Exemption for R&D units: sales to registered research institutions qualify for duty-free clearance when prescribed conditions are met.
Sales to a research and development institution registered with the Department of Scientific & Industrial Research may be made without charging excise if the purchaser meets the notification's conditions and furnishes the prescribed undertaking; the supplier must cite the notification on the invoice and select that notification in the excise return, and treat the dispatch as an exempted clearance under the Central Excise procedural rules.