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TMI Blog2015 (12) TMI 1005X X X X Extracts X X X X X X X X Extracts X X X X ..... s falling under Chapter Heading 88033000 of Central Excise Tariff Act, 1985. 2. The Ministry of Defence (Navy) placed the purchase order on the respondent company for supply of Radar and its parts for the Indian Navy Helicopters. The respondent company cleared the said goods on payment of duty of Rs. 12,90,258/-. Subsequently, they received a communication from their customer that the goods supplied are exempt from levy of excise duty vide Sl.No.3 of Notification No. 64/1995 CE dated 16.03.1995, as amended by Notification No. 25/2002 CE dated 11.04.2002. A certificate was also given by the Joint Director Naval Air Material, Integrated Headquarters of Ministry of Defence (Navy), New Delhi, bearing ref. SM/10/A/SU/C/1919/TAAL dated 01.03.201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oner (Appeals) had gone beyond the issue in question by extending the benefits of Notifications which were not at all claimed by the respondent/assessee. He further submits that the Indian Navy has not certified that the goods supplied are being used on board the vessel and the exemption was specifically denied to the respondent/assessee on the ground that the goods supplied were not used as ship stores. He prayed for setting aside the order in appeal and to uphold the order in original. He relied on the following citation in the case of Govardhan Das Vs CCE, Kolkata-II - 2004 (175) ELT 576 (Tri-Kolkata). 6. The learned Counsel for the respondent/assessee submits that the grounds of appeal adduced by the revenue are not sustainable for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 (S.C) in the case of CCE, Surat vs Essar Steel India Limited, has rejected the revenue's appeal and upheld the order passed by the Tribunal that the goods supplied by the respondent as stores for consumption on board vessel of the Indian Navy are stores. The relevant paragraphs are reproduced below. "2. End User Certificate dated 7th August, 2007 issued by the Lieutenant Commander, Dy. Controller of Procurement for Material Superintendent reads as under : "END USER CERTIFICATE 1. It is certified that the goods purchased by Material Organisation, Controllerate of Procurement, Naval Base, Kochi - 682 004 from M/s. ESSAR Steel Ltd., Chennai against Purchase Order No. MOK/CPRO/NS.06K95C001, dated 25 Aug. 2006, are exclusively for consump ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as rightly claimed the excise duty paid on the goods supplied to the Indian Navy and they are eligible for exemption under Notification No. 64/1995-CE dated 16.03.1995.
8. By respectfully following the ratio delivered in the above judgment of the Honble Supreme Court of India, we hold that the respondent/assessee are eligible for exemption under Notification No.64/1995-CE (Sl.No.3) dated 16.3.1995 as amended by Notification No.25/2002-CE dated 11.04.2002. The Commissioner (Appeals) has rightly allowed the assessees appeal and we do not find any infirmity in the impugned order. In view of the above position, the impugned order is upheld and the appeal is dismissed.
(Pronounced in open court on 27.11.2015) X X X X Extracts X X X X X X X X Extracts X X X X
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