End User Certificate satisfied exemption requirements for Navy supplies intended for consumption on board warships.

Goods supplied to the Indian Navy were treated as eligible for exemption under Notification No. 64/95-CE because the End User Certificate stated they were purchased exclusively for consumption on board warships. That certificate supported the finding that the supplies were stores for consumption on board Indian Navy vessels, and that conclusion was not legally flawed. The certificate satisfied the twin requirement of Clause 3 of the exemption notification, and the attempt to confine its effect only to Clause 21 was rejected. The issue was decided against the supplier and in favour of the assessee.

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Issues: Whether the subject goods supplied to the Indian Navy were covered by the exemption under Notification No. 64/95-CE on the basis of the End User Certificate and the requirement of consumption on board warships.

Analysis: The End User Certificate stated that the goods were purchased exclusively for consumption on board warships of the Indian Navy. On that basis, the finding that the goods were supplied as stores for consumption on board vessel of the Indian Navy was not legally flawed. The certificate satisfied the twin requirement of Clause 3 of the exemption notification, and the appellant's attempt to confine it only to Clause 21 was rejected.

Conclusion: The issue was decided against the appellant and in favour of the assessee.

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