TMI Blog2007 (9) TMI 499X X X X Extracts X X X X X X X X Extracts X X X X ..... e investigation made, it was noticed that the respondent had supplied certain equipments to various ship builders and stores of Coast Guard, Transreceiver, its accessories, smoke detectors, etc. The goods were supplied against the Purchase Orders given by the ship builders. Only a few invoices were raised for spares. According to the Revenue, the exemption under the Notification dated 16th March, 1995 (item of Serial No. 3) was applicable if the goods were supplied as stores for consumption on board a vessel of the Indian Navy or Coast Guard. 3. The Commissioner held that the notice did not indicate any evidence that the equipment supplied by the respondent was not used on board a Naval Ship. It was held that the expression ship stores f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... whom the goods are to be supplied but bases the exemption on the nature of the goods i.e. stores and the purpose for which they are taken on board namely consumption. However, the words on board a vessel would indicate that there should be a vessel already in existence on the board on which the goods can be consumed. Even if for the purpose of classification in view of Chapter Note 1 to Chapter 89, unfinished or incomplete vessels may be included in sub-heading 89.06, it cannot follow that the expression on board a vessel should also be read as on board an incomplete or unfinished vessel. The expression on board would always mean, on board a complete and finished vessel. The exemption is intended only when the stores are supplied for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the Hon ble Supreme Court by order reported in 2004 (163) E.L.T. A209 (S.C.). 7. In Goa Paints Allied Products (supra), the Tribunal, in the context of the same Notification referring to the phrase on board the vessel held in paragraph 16 of the judgment as under : - Our presumption is that the phrase refers to a ship already in existence. It is indirectly mentioned in the Board Circular referred to above. It would therefore not be possible to extend the benefit of this Notification to the goods which are admittedly supplied for use in a ship under construction. An appeal preferred against this decision was dismissed by the Hon ble Supreme Court holding that their lordships were not persuaded to take a view different than the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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