Exemption from excise duty on cigarettes - Supplied as stores on board a ship of the Indian Nevy - Regarding - Central Excise - 354/51/87-TRU

Exemption from excise duty on cigarettes - Supplied as stores on board a ship of the Indian Nevy - Regarding F. No. 354/51/87-TRU Dated 10-9-1987 Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Exemption from excise duty on cigarettes - Supplied as stores on board a ship of the Indian Nevy - Regarding. Notification No. 207/87-CE, dated the 9th September, 1987 has been issued exempting cigarettes supplied as stores for consumption on board a ship of the Indian Navy from both basic excise duty and additional excise duty in lieu of sales tax. The exemption is subject to the following conditions namely :- (i) the manufacture follows such procedure as may be prescribed by the Collector of Central Excise; (ii) the Commanding Officer of the Indian Navy ship issues a consumption certificate to the officer-in-charge of the bonded warehouse from where supply of cigarettes has been made, within a period of six months from the date of supply. 2. As regards the procedure to be specified, the Collectors may prescribe the same procedure followed hitherto in respect of cigarettes supplied as stores prior to withdrawal of the concession vide Notification No. 347/86-CE dated the 18th June, 1986. In other words, 'the procedure should be similar to the one for movement of goods under bond from one warehouse to another (under form A.R. - 3A). Further the cigarette packages shall be marked "I.N. Ships only". In addition to the above, the Commanding Officer of the Indian Navy Ship to which supply of cigarettes has been made from the customs bonded warehouse should issued a certificate within a period of six months from the date of supply that the cigarettes supplied under the said Notification has been consumed on board the said ship only. This certificate will be issued to the Officer in charge of the customs bonded warehouse. Notification No. 207/87-CE, dated 9-9-1987 will be in force for a period of one year i.e. upto 8-9-1988. 3. The Collectors are requested to take suitable measures to ensure that there is no diversion of cigarettes meant for Indian Navy. The Collectors may also submit a monthly report indicating the quantity of cigarettes cleared for supply as stores to Indian Navy Ships brand-wise and manufacture wise and the amount of revenue foregone.