9911796707
TMI Blog1996 (10) TMI 163X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 8-9-1986, as amended by Notification No. 267/87, dated 29-12-1987. The said Notification exempts "systems and sub-systems of launch vehicle and systems and sub-systems of Satellite Projects falling under Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), from the whole of the duty of excise leviable thereon which is specified in the said Schedule", provided that such system and sub-systems are meant for use in launch vehicle project of a Satellite Project of the Indian Space Resea- rch Organisation (ISRO) of the Government of India, Department of Space. 1.2 The manufacturer produces, before the clearance of the said system and sub-systems, a certificate from an Officer not below the rank of an Assistant Scientific Secreta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontract and value of the Contract : SA/0182/87/01254 dated 30-11-1987 Rs. 53,427.50 7. Date of probable date of receipt of the system/sub-system : Before 10-11-1988 8. Any other relevant information : Nil Certified that the system/sub-system in question is eligible for excise duty exemption as per guiding principles conveyed by the Ministry of Finance, Department of Revenue Notification No. 405/87 Central Excises, dated 8-9-1986 and Notification No. 267/87-C.E., dated 29-19-1987. Sd/ 13-6-1988 PROJECT DIRECTOR/DIRECTOR CERTIFICATE This is to certify that the system and sub-systems for which exemption from payment of Excise duty is claimed, are meant for use in a launch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on Tribunal's judgment in the case of Equipment Sales Corporation v. Collector of Customs reported in 1989 (39) E.L.T. 431 (Tribunal). In that case, the question arose whether a certificate given by the competent authority in the Directorate General of Health Services should be treated as a sufficient certificate when they declared the goods in question as a life-saving equipment. Similarly, he submits that once the certificate has been granted by the Assistant Scientific Secretary, the bona fides of the certificate that the goods in question are not sub-system for the specific purpose cannot be looked into by the Revenue. 4. Regarding the technical aspect, he relies on a decision of the Karnataka High Court in the case of Commission ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... olumn of the second page of the classification list which states that "IVAREZ ISRO RESIN is used as a Binder in Exhaust Cores by Indian Space Research Organisation". He, therefore, submits that Resins by themselves, on the basis of the aforesaid description given by the Assistant Scientific Secretary, as also given by the Appellants in the classification list, cannot be treated as a sub-system for a Satellite Launch System. Therefore, the benefit of the Notification claimed by the Appellants has been rightly denied. Citations relied upon by the learned Advocate, he submits, are not at all relevant to the point. In the case of Equipment Sales Corporation, submits the learned SDR, there was no such question involved herein. The question invol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er clarified in the classification list that the resins are used as a binder in Exhaust Cores in ISRO. It is, therefore, apparent that resins as such are not a sub-system. The same are merely a raw material for manufacture of nozzle sub-system as declared in the certificate or it may be for any other system or sub-system in a Satellite Launch Vehicle or a Satellite Project. Now, if we read the Notification, exemption is only for a system or a sub-system and not for a raw material or a component part of a system or a sub-system. It is, therefore, apparent that the benefit of notification cannot be extended to the resin in question. The lower authorities have come to the right conclusion. Reliance placed by the learned Advocate on the two jud ..... X X X X Extracts X X X X X X X X Extracts X X X X
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