Supreme Court affirms exemption of goods for Indian Navy use under Central Excise Notification.

Commissioner of Central Excise Versus M/s. Essar Steel India Limited

Commissioner of Central Excise Versus M/s. Essar Steel India Limited - 2014 (308) E.L.T. 440 (SC) 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.