Exemption for defence goods cleared to the Ministry of Defence upheld where no end-use certificate was prescribed.

Notification No. 63/95-C.E. was held to apply to defence goods cleared to the Ministry of Defence, because the notification did not require production of an end-use certificate as a condition for exemption. The goods were manufactured for defence purposes, were not intended for private use, and the invoices showed clearance to the Ministry of Defence; an end-use certificate had also been furnished as a precaution. In the absence of any express stipulation in the exemption notification, denial of the benefit was unsustainable, and the assessee was entitled to the exemption.

---

---

Issues: Whether the benefit of Notification No. 63/95-C.E. dated 16-3-95, as amended, was available to clearances of defence goods made to the Ministry of Defence without producing an end-use certificate.

Analysis: The notification was found to contain no condition requiring production of an end-use certificate from the Ministry of Defence. The goods were manufactured for defence purposes, were not meant for private use, and the invoices indicated clearance to the Ministry of Defence. An end-use certificate had in any event been produced as a precautionary measure. In the absence of any such stipulation in the exemption notification, denial of the benefit was held to be unsustainable.

Conclusion: The assessee was entitled to the exemption under the notification, and the Revenue's denial of the benefit was rejected.

---