2014 (6) TMI 345 - SC - Central Excise

Goods supplied to Indian Navy - consumption on board vessel - End User Certificate - Valid or not - Notification No. 64/95-CE - Held that - Subject goods were supplied by the respondent as stores for consumption on board vessel of the India Navy cannot be said to be legally flawed. END USER Certificate is not applicable only for the purpose of Clause 21 of Exemption Notification 64/95 Central Excise and not in respect of Clause 3. The End User Certificate leaves no manner of doubt that the subject goods were purchased by Material Organisation exclusively for the consumption on board warships of the Indian Navy. This satisfies the twin requirement of Clause 3. - Decided against Revenue.

Summary

Issues: Interpretation of End User Certificate for excise duty exemption under Central Excise Notification No. 64/95-CE.

Analysis:
The judgment revolves around the interpretation of an End User Certificate dated 07th August, 2007, issued by the Lieutenant Commander, Dy. Controller of Procurement for Material Superintendent. The certificate explicitly states that the goods purchased from a specific supplier are exclusively for consumption on board warships of the Indian Navy and were exempted from excise duty under Central Excise Notification No. 64/95-CE. The Customs, Excise and Service Tax Appellate Tribunal had upheld that the goods were supplied as stores for consumption on board vessels of the Indian Navy based on this certificate, a decision deemed legally sound by the Supreme Court.

The appellant's senior counsel argued that the End User Certificate was only applicable for a specific clause of the exemption notification and not for another clause. However, the Supreme Court disagreed with this interpretation, stating that the certificate unambiguously indicated that the goods were indeed purchased for consumption on board warships of the Indian Navy, satisfying the requirements of the relevant clause. Consequently, the Court found no merit in the Civil Appeal and dismissed it without any costs.

In conclusion, the Supreme Court's judgment upholds the validity and interpretation of the End User Certificate in the context of excise duty exemption under Central Excise Notification No. 64/95-CE, affirming that the goods in question were indeed meant for consumption on board warships of the Indian Navy based on the clear language of the certificate.