TMI Blog2010 (1) TMI 1068X X X X Extracts X X X X X X X X Extracts X X X X ..... d August, 2003 to August, 2004 to various reputed research institutions, universities, colleges for research purposes at nil rate of duty by availing exemption under Notification No. 10/97-C.E., dt. 1-3-1997. Lower authorities coming to conclusion that the provisions of Notification No. 10/97 are not properly complied with, issued a show cause notice to the appellant on the ground that only items which are used as consumables to various machineries specified in the Notification are only eligible for exemption and demanded the duty liability to be paid on such Enzymes cleared by the appellant. The appellants contested the show cause notice. The adjudicating authority after considering the submissions made by the appellants before him came ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issued by the appellants for clearing such Enzymes. It is also her submission that the Enzymes which are supplied by them were used in the instruments in course of research. It is her submission that the ld. Commissioner (Appeals) has not considered this particular aspect before coming to conclusion. 4. Ld. SDR on the other hand would submit that the conditions of the Notification are not complied with by the appellant. It is her submission that the said Notification clearly indicates that the consumables should be used along with the scientific and technical instruments. It is her submission that the word and should be read as or . 5. We have considered the submissions made by both sides and perused the records. It is undisputed in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by exempts goods specified in column (3) of the Table below and falling under the 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, when supplied to the institutions specified in the corresponding entry in column (2) of the said Table, subject to the conditions specified in the corresponding entry in column (4) of the said Table. TABLE S. No. Name of the Institutions Description of the goods Conditions (1) (2) (3) (4) 1. Public funded research institution or a university or an Indian Institute of Technology or Indian Institute of Science, Bangalore or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not disputed. The question now arises, is whether the Enzymes supplied by the appellants would be eligible for exemption under the category of consumables . On perusal of the certificates issued by various institutes, we find that they have clearly indicated that Enzymes supplied by the appellant were to be used as consumables for research purposes. We find that the technical write-up given by the appellants shows the following different types Enzymes :- 1. Restriction enzymes : Definition : A restriction enzyme also called restriction endonuclease cut a double stranded DNA. The cut DNA is purified for further applications during which the remains/residues of enzyme are removed either by purification kits or organic solvents and di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opular enzyme used for PCR (Polymerase Chain Reaction) T7RNA Polymerase : This enzyme is a DNA dependent RNA that produces RNA. In cells, RNAP is needed for constructing RNA chains from DNA genes as templates, a process called transcription. This enzyme is used for invitro transcription. 8. It can be noted from the above technical literature that the Enzymes are used by the research institutes for the purpose of research in the field of DNA or RNA. It is a common knowledge that the said Enzymes are used in the scientific instruments in the course of research. It is also to be noted that the Enzymes which are supplied by the appellants are cleared to the institutions, for research on DNA and RNA and the said Enzymes are used as consuma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... utions for the purposes of research, under a certificate by the appropriate authorities have to be held as covered by the Notification. The demand is accordingly set aside and appeals are allowed with consequential relief to the appellant. 9. In sum, we hold that the Enzymes which are cleared by the appellant to the research institutes, on the strength of the certificates issued by such institutes, could be considered as consumables used in the scientific and technical instruments. 10. Accordingly, in view of the findings as recorded hereinabove, we find that the impugned order is liable to be set aside and we do so. The impugned order is set aside and appeal is allowed with consequential relief, if any. (Pronounced in court on 18-1- ..... X X X X Extracts X X X X X X X X Extracts X X X X
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