2006 (7) TMI 403

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....ion No. 70/77-C.E. dated 7-5-1977 for the telecommunication equipment to be supplied as stores for consumption on board a vessel of the Indian Navy. The Asst. Collector rejected the classification on the ground that the telecommunication equipment to be fitted in building a vessel is not stores for consumption on board a vessel of Indian Navy. The appellants approached the Commissioner (A). The Collector (A) held that the telecommunication equipment and telephone exchanges cannot be termed as ship stores or naval stores within the plain meaning of the word "stores" in the Dictionary. Further, he held that the said equipment could not be considered as stores under Section 2(38) of the Customs Act. Accordingly, he upheld the AC's order and re....

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....above definition that the word "stores" is not restricted to goods for consumption of the crew on board vessel but also covers articles of equipment whether for immediate fitting or not. The impugned goods Electronic Automatic Exchange is an article of equipment for immediate fitting on board of a vessel and is meant for communication purposes of ships crew on board the vessel. Hence, the impugned item definitely qualifies as stores for consumption on board the vessel of Indian Navy. The following case laws were relied on: (i)      Goa Paints & Allied Products v. CCE, Goa - 2001 (127) E.L.T. 489 (Tri.-Mum.) [affirmed by the Supreme Court - 2001 (129) E.L.T. A308]. (ii)    Lloyd Insulations (Indi....

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....ication. The lower appellate authority holds that the above equipment first of all, cannot be considered as "stores" either by the Dictionary meaning of stores or the definition given in the Customs Act to Section 2(38). Further according to the original authority, consumption would mean those items which are consumed during the course of the voyage and therefore, a fixed and permanent asset such as telephone exchange having a life period of more than the life period of a vessel itself, cannot be considered as an item of consumption. 7. In our view, the lower authorities have given a very restricted meaning to the words (1) Stores; and (2) Consumption. Let us take the term "stores". Since the Notification has not defined the terms '....