Exemption for warehoused goods cannot be denied solely because warehousing was withdrawn when the goods remain otherwise exempted.

Exemption for warehoused goods cleared to Navy and Coast Guard vessels was held not to be denied merely because the warehousing facility had been withdrawn. The Tribunal noted that duty demand had been raised for the period after withdrawal and exemption under Notification No. 64/95-CE was refused for stock held on the relevant dates, but it followed its earlier view that withdrawal of warehousing by itself does not justify denial where the goods are otherwise exempted. On that reasoning, the denial of exemption was unsustainable and the appeal succeeded.

---

---

Issues: Whether the benefit of exemption notification could be denied in respect of warehoused goods cleared to Navy and Coast Guard vessels merely because the warehousing facility was withdrawn.

Analysis: The duty demand had been confirmed for the period after withdrawal of the warehousing facility and the exemption under Notification No. 64/95-CE was refused for the stock held on the relevant dates. The Tribunal followed its earlier view that where the goods were otherwise exempted, withdrawal of the warehousing facility did not by itself justify denial of the exemption benefit in respect of warehoused goods.

Conclusion: The denial of exemption was not sustainable and the appeal succeeded.

Ratio Decidendi: Exemption on warehoused goods cannot be denied solely because the warehousing facility is withdrawn, if the goods are otherwise exempted.

---