2003 (9) TMI 249 - AT - Central Excise

Summary

Issues:
- Entitlement to exemption under Notification 10/97 for supply of lathe machines to specific institutions.

Analysis:
The appeal before the Appellate Tribunal CESTAT, BANGALORE involved the issue of whether the respondent company was entitled to exemption from duty under Notification 10/97 for the supply of lathe machines to specific institutions like IIT and Bhaba Atomic Research Centre. The original authority denied the exemption, leading to a demand confirmation, while the Commissioner (Appeals) ruled in favor of the assessee, stating they were eligible for the exemption.

The notification in question exempted certain goods falling under the Central Excise Tariff Act when supplied to specified institutions, subject to conditions outlined in the notification. The key contention was whether lathe machines supplied by the respondent qualified as goods under the notification. The institution receiving the lathe machines met the notification's qualifications, and the conditions were satisfied. The dispute centered on whether a lathe machine could be classified as equipment under the notification. The Commissioner (Appeals) determined that a lathe machine constituted equipment and fell within the notification's scope. Despite arguments that a lathe machine, being an industrial machine, could not be equated to scientific and technical equipment, the Tribunal disagreed. It recognized a lathe machine as technical equipment, especially considering its supply to scientific research institutions and teaching establishments. Consequently, the Tribunal upheld the Commissioner (Appeals) finding, dismissing the appeal and affirming the entitlement to exemption under Notification 10/97 for the supply of lathe machines.