Ship stores exemption denied where goods were supplied to a private buyer, not directly for Indian Navy consumption onboard.

Exemption under Notification No. 70/77-C.E. applies only to excisable goods supplied as stores for consumption on board an Indian Navy vessel. Ice Cub Making Cabinets cleared to a private buyer for onward supply did not satisfy that requirement because they were not supplied directly to the Indian Navy for use as ship stores. The definition of "stores" under the Customs Act did not cure the factual failure, so the goods were not eligible for exemption.

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Issues: Whether Ice Cub Making Cabinets supplied to a private buyer for onward supply could be treated as stores for consumption on board an Indian Navy vessel so as to qualify for exemption under Notification No. 70/77-C.E.

Analysis: The exemption applied only to excisable goods supplied as stores for consumption on board a vessel of the Indian Navy. The goods in question were cleared to Voltas Ltd. and not supplied by the assessee directly to the Indian Navy for use as ship stores. The definition of stores under Section 2 of the Customs Act, 1962 did not assist the assessee because the factual requirement of supply for consumption on board an Indian Navy vessel was not satisfied.

Conclusion: The assessee was not entitled to the benefit of Notification No. 70/77-C.E. in respect of the Ice Cub Making Cabinets.

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