https://www.taxtmi.com/caselaws?id=359737 Additional test cells retained during battery manufacture for supply to the Indian Navy were held eligible for exemption under Notification No. 64/95-C.E. The batteries were invoiced and certified as a complete set for naval supply, and the record showed that the test cells were also supplied to and used by the Navy. Because the exemption certificate covered the full quantity and the test cells formed an integral part of the supply, duty could not be demanded on that basis. The principle applied was that ancillary or test components supplied and used as part of the notified recipient's complete supply cannot be denied exemption merely because they were initially treated as test items in the factory. en-us Fri, 13 Apr 2018 00:00:00 +0530 Fri, 04 May 2018 08:48:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=359737 Additional test cells retained during battery manufacture for supply to the Indian Navy were held eligible for exemption under Notification No. 64/95-C.E. The batteries were invoiced and certified as a complete set for naval supply, and the record showed that the test cells were also supplied to and used by the Navy. Because the exemption certificate covered the full quantity and the test cells formed an integral part of the supply, duty could not be demanded on that basis. The principle applied was that ancillary or test components supplied and used as part of the notified recipient's complete supply cannot be denied exemption merely because they were initially treated as test items in the factory. Case-Laws Central Excise Fri, 13 Apr 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=359737