News Update

Income tax hands over Rs 1700 Cr tax demand to Congress PartyGST - Neither SCN nor the order spell out the reasons for retrospective cancellation of registration, hence cannot be sustained: HCStage-2 of Vikram-1 orbital rocket successfully test-firedGST - Non-application of mind - If reply was unsatisfactory, details could have been sought - Record does not reflect that such exercise was done - Matter remitted: HCHouthis claim UK has not capability to intercept their hypersonic missilesGST - Merely because a taxpayer has not filed returns for some period does not mean that registration is required to be cancelled with retrospective date also covering the period when returns were filed and taxpayer was compliant: HCIsraeli forces kill 200 Palestinians at Gaza medical complex & arrest over 1000GST - Petitioner's reply, although terse, is not taken into account while passing assessment orders - Petitioner put on terms, another opportunity provided: HCUnveil One Nation; One Debt Code; One Compliance Rule for Centre & StatesChina moves WTO against US tax subsidies for EVs & renewable energyMore on non-doms - The UK Spring Budget 2024 (See TII Edit)Notorious history-sheeter Mukhtar Ansari succumbs to cardiac arrest in UP jailTraining Program for Cambodian civil servants commences at MussoorieNY imposes USD 15 congestion taxCBIC revises tariff value of edible oils, gold & silver45 killed as bus races into ravine in South AfricaCBIC directs all Customs offices to remain open on Saturday & SundayBankman-Fried jailed for 25 yrs in FTX scamI-T- Once the citizen deposits the tax upon coming to know of his liability, it cannot be said that he has deliberately or willfully evaded the depositing of tax and interest in terms of Section 234A can be waived: HCHouthis attack continues in Red Sea; US military shoots down 4 dronesFederal Govt hands out USD 60 mn to rebuild collapsed bridge in BaltimoreI-T - Receipts of sale of scrap being part & parcel of activity and being proximate thereto would also be within ambit of gains derived from industrial undertaking for purpose of computing deduction u/s 80-IB: HCCanadian School Boards sue social media titans for 4 bn Canadian dollar in damagesFormer IPS officer Sanjiv Bhatt jailed for 20 yrs for planting drugs to frame lawyerCus - No Cess is payable when Basic Customs Duty is found to be Nil: CESTAT
 
CX - Notfn 10/97 - Air conditioning & refrigeration equipment supplied to R&D Cell of Defence Ministry & modified as a result of research for use in specialized mobile operation theatres for use by Indian Army in field are entitled for exemption: CESTAT

By TIOL News Service

MUMBAI, MAY 02, 2016: THE appellant claimed exemption in terms of Notification 10/97-CE dated 01.03.1997 in respect of clearances air conditioning and refrigeration equipment to central government customers operating under the control of Ministry of Defence i.e. Research & Development Organisations namely, Vehicle Research & Development Establishment (VRDE), Ahmednagar and the Electronic & Radar Development Establishment (LRDE), Bangalore. These establishments were undertaking research and development work on containerized operation theatre complexes for field operations for the Defence Forces. The equipment was supplied by the appellant on the basis of the certificates given by the Head of the Division of the concerned organisation.

A SCN came to be issued seeking denial of the exemption on the ground that air conditioners are not used for scientific and research purposes ; moreover the appellants have not complied with the conditions of Notification 10/97-CE dated 01.03.1997.

Both the lower authorities denied the benefit of exemption and, therefore, the appellant is before the CESTAT.

The appellant inter alia submitted that the Commissioner (A) had failed to appreciate letter dated 21.02.1999 received from the CQAE, Controller of Quality Assurance & Engineering Equipment which indicated that the original AC systems had failed the approval tests and had to be re-engineered to meet the Defence requirements; that the respondent had failed to appreciate that the standard products failed and the AC systems had to be redesigned for the specialized operations more suited for the defence forces; that the eligibility certificates were issued by the customers who are R&D establishment of the Ministry of Defence, Government of India; that the appellant did not suppress any information from the department. They also relied on the following decisions Godrej Appliances Ltd. - 2008-TIOL-2847-CESTAT-AHM & Sunbeam Appliances - 2011-TIOL-697-CESTAT-MUM in support.

The AR reiterated the stand of the department assisted by the decisions in H & R Johnson India Ltd. - 2008-TIOL-2661-CESTAT-MUM ; Sudhir Engineering Co. - 2003-TIOL-201-CESTAT-DEL.

The Bench observed -

+ We find that in order to claim general exemption 10/97 the following conditions need to be fulfilled.

a) Public funded research institution b) Institution is registered with the Government of India c) The goods shall be scientific and technical instruments d) The goods are requirement for research purposes only

e) Produced the certificate by the competent authority.

In this case, the appellant have complied with all the above stated conditions. + We also find that the AC system are specially designed and modified for use in specialized mobile operation theatres for use by the Indian Army in the field.

+ We are of the considered opinion that the appellant are entitled for the exemption under Notification 10/97 dated 01.03.1997 because the institution to whom the appellant has supplied the goods is a public sector institution and they have also furnished the requisite certificate and they are not engaged in any commercial activity and the said goods are required for research purposes.

Concluding that the impugned order was not sustainable in law, the same was set aside and the appeal was allowed with consequential relief.

(See 2016-TIOL-1046-CESTAT-MUM)


POST YOUR COMMENTS
   

AR not Afar by SK Rahman

TIOL Tube Latest

Shri Shailendra Kumar, Trustee, TIOL Trust, giving welcome speech at TIOL Awards 2023




Shri M C Joshi, Former Chairman, CBDT




Address by Shri Buggana Rajendranath, Hon'ble Finance Minister of Andhra Pradesh at TIOL Awards 2023