TMI Blog2019 (10) TMI 947X X X X Extracts X X X X X X X X Extracts X X X X ..... larly the Electronics 8 Radar Development Establishment (LRDE) has also provided the necessary exemption certificate from the competent authority. These facts indicate that the first condition is satisfied in the instant case. Notification No. 45/2017-Central Tax(Rate) dated November 14, 2017 is applicable on supply of trucks and its spare parts to Public funded research institutions - The submissions of the applicant regarding the nature of the other recipients needs to be verified with reference to the research activity done and also whether they are recognised as a Public Funded Research Organisation and some of the companies to which the applicant intends to supply may not be covered under the term Research Organisation like Bharat Electronics Ltd,. Bharat Heavy Electricals Ltd., Hindustan Aeronautics Ltd. The supply of trucks and spare parts by the applicant to Satish Dhawan Space Centre (SHAR), (SDSC SHAR) and Electronics Radar Development Establishment (LRDE) respectively, as specified in the application, are covered under the description of goods specified in Notification No. 45/2017 - Central Tax (Rate) dated 14.11.2017 and hence are eligible for a reduced rate of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontemplating the supply of goods mentioned in the table above to the following Public Funded Research Institutions. Vehicle Research and Development Establishment (VRDE) Bharat Electronics Limited (BEL) Defence Research and Development Organisation (DRDO) BrahMos Aerospace Private Limited Bharat Heavy Electricals Limited (BHEL) Hindustan Aeronautics Limited (HAL) d. The applicant states that as per Notification No.45/2017 - Central Tax (Rate) dated 14th November, 2017, Government has provided for a concessional rate of tax (i.e. 5%) on certain specified goods when supplied to Public Funded Research Institution subject to the conditions mentioned in the said notification. e. One of the conditions for seeking benefit of concessional rate as per the above notification is that such Public Funded Research Institution are required to produce a certificate from an officer not below the rank of the Deputy Secretary to the Government of India or the Deputy Secretary to the State Government or the Deputy Secretary in the Union Territory in the concerned department to the supplier at the time of supply of the goods specified in the notification. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot exceed INR 50,000 in a financial year. The Public Funded Research Institution produces a certificate from an office not below the rank of Deputy Secretary to the Government of India or the Deputy Secretary to the State Government or the Deputy Secretary in the Union Territory in the concerned Department to the supplier at the time of supply of the above specified goods. 4.3 The applicant states that in the present case, the Public Funded Research Institutions have issued certificates to the applicant in light of Notification No.45/2017 (supra) for charging concessional rate of tax i.e. 5% in respect of goods to be supplied to them. 4.4 Regarding the supply of trucks to SDSC SHAR, the applicant states that they are given to understand that the trucks to be supplied to them will be used for transporting research and development s equipment across test sites. Hence the goods (i.e trucks) to be supplied will qualify as goods specified in column 3 of Notification No.45/2017 (supra). Hence the applicant submits that they can charge tax at concessional rate of 5% in line with the above notification. 4.5 In case of supply of spare parts of trucks to LRDE, the applicant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ificate issued by the SDSC SHAR wherein the competent officer has certified that SDSC SHAR is a public funded research institution. Similarly the Electronics 8 Radar Development Establishment (LRDE) has also provided the necessary exemption certificate from the competent authority. These facts indicate that the first condition, as at para 5.3(a) above, is satisfied in the instant case. 5.5 Now we proceed to examine whether the second condition is satisfied or not. The applicant supplies certain trucks and their spare parts. In this regard we refer to column (3) in the table given in Notification No.45/2017, which deals with the description of the goods that are permissible for supply at concessional rate. The same are indicated in para 5.3(b)(i) and (ii) above. The question before us is to examine whether the trucks can be considered as scientific and technical instruments, apparatus or equipments. While we may not call the trucks scientific and technical instruments, it would be worthwhile to see if the trucks can be considered as apparatus or equipments. In this regard the applicant has submitted the definitions of these terms in the general parlance. We take note of these de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the same question in relation to the erstwhile Central Excise Notification No. 10/97, dated 1.03.1997. This Notification is completely analogous to Notification No.45/2017. It has been consistently held by the various benches of the Tribunal that so long as there is a clear certificate issued by the designated officer to the effect that item is being used for research purposes, the benefit of the Notification cannot be denied. One of the judgements relates to the supply of trailer trucks only and it was held that the same are eligible in terms of the notification ( PL Haulwel Trailers Vs Commissioner of Central excise Chennai, 2002 (142) ELT 204(Tri.- Chennai) dated 28.01.2002) = 2002 (1) TMI 160 - CEGAT, CHENNAI . 5.10 we are thus of the considered opinion that Notification No. 45/2017-Central Tax(Rate) dated November 14, 2017 is applicable on supply of trucks and its spare parts to Public funded research institutions. 5.11 The submissions of the applicant regarding the nature of the other recipients needs to be verified with reference to the research activity done and also whether they are recognised as a Public Funded Research Organisation and some of the companies ..... X X X X Extracts X X X X X X X X Extracts X X X X
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