9911796707
TMI Blog2004 (8) TMI 132X X X X Extracts X X X X X X X X Extracts X X X X ..... cation No. 64/95-C.E. provides exemption from payment of duty to the excisable goods if supplied as stores for consumption on Board of a vessel of the Indian Navy; that the respondents had availed of the exemption under the said Notification; that the goods were not supplied as a stores for consumption on Board a vessel of Indian Navy; that the Commissioner (Appeals) under the impugned order has allowed the benefit of Notification to the respondents holding that any supplies made to the Indian Navy ships will be eligible for exemption under Notification No. 64/95 provided the goods so supplied are meant for consumption on board of such a vessel, relying upon the decision of the Tribunal in the case of Goa Paints and Allied Products v. CCE [ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct that decision in the case of Moosa Hazi Patrawala has been affirmed by the Supreme Court, the respondents are not eligible to the benefit of Notification. 3. On the other hand, Shri K.K. Shroff, learned Advocate, submitted that they are supplying Rigid Polyurethane foam, insulated Boards/secondary pipes to vessel of the Indian Navy which are already in existence; that the supplies are for replacement/refurnishing of ships of the Indian Navy; that the supplies are infact supplies as stores and consumption on board vessels of the Indian Navy; that therefore, the goods supplied by them qualify for the benefit of exemption; that in a similar issue, the Tribunal's Bench at Mumbai has allowed the Appeal filed by them; that the question of di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ved in the present Appeal is no more res integra as the issue had been decided by the Supreme Court inasmuch the Appeal filed by M/s. Moosa Hazi Patrawala against the denial of benefit of Notification No. 70/77, which is para materia to the Notification No. 64/95, has been dismissed. The Tribunal has in other cases also such as Impreg Insulations and Leader Engineering Works has held that the benefit of Notification No. 64/95 will not be available to the goods supplied to a third party. The respondents have relied upon the decision in the case of Goa Paints and Allied Products (supra) based on Certificate given by Naval authorities that the goods purchased from Goa Paints and Allied Products were exclusively for use on board the vessels o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. has also been dismissed by the Supreme Court as reported in 2004 (167) E.L.T. A97. The submissions regarding direct supply to Indian Navy cannot be considered at this stage as the same had not been raised before the lower authorities and it requires verification. Following the ratio of the decision relied upon by the learned Senior Departmental Representative, we set aside the impugned order and allow the Appeal. The respondents are therefore, liable to pay the duty on the impugned goods. However, we do not find this to be a fit case for imposition of penalty as the issue involved is whether the benefit of Notification was available to the respondents or not. We, therefore, hold that no penalty is imposable on the respondents. - - Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
