Ship stores exemption applies when the Navy's certificate is produced, even if the goods are durable and long-lasting.

Goods supplied to the Indian Navy as ship stores are entitled to exemption under Notification No. 64/1995-CE when the prescribed Navy invoice or end-use certificate is produced. Prior Tribunal rulings, supported by Supreme Court observation, establish that the exemption cannot be denied merely because the goods are durable, have a long life, or are not consumed immediately. The operative effect is that the Revenue's objection on the nature and longevity of the electric motors is unsustainable once the Navy's certificate is furnished, and the exemption remains available.

---

---

Issues: Whether electric motors supplied to the Indian Navy were entitled to exemption under Notification No. 64/1995-CE when the Navy had issued the requisite certificate, notwithstanding the Revenue's objection that the goods had a long life and were not consumed within a short period.

Analysis: The notification granted exemption to goods supplied as ship stores to the Indian Navy subject to production of the Navy's invoice or certificate. The dispute had already been settled by earlier Tribunal decisions holding that goods supplied against a Navy certificate could not be denied the benefit merely because they were durable or had a long life. The Supreme Court had also observed that once an end-use certificate is issued by the Indian Navy, doubts entertained by the department cannot prevail. In light of that settled position, the Revenue's objection based on the nature and longevity of the goods was unsustainable.

Conclusion: The exemption was admissible and the Revenue's denial was rejected.

Ratio Decidendi: Where goods are supplied to the Indian Navy under a notification governing ship stores and the requisite end-use certificate is produced, exemption cannot be denied merely because the goods are durable or not consumed immediately.

---