2009 (5) TMI 850

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....paying 8% of the invoice value as required under Rule 6(2) of Cenvat Credit Rules, 2002. The Zinc Ingots were used for manufacture of "Anodes" which in turn are used onboard ships to protect the hull surface from corrosion. Since, the zinc ingots are not used directly as ship stores for consumption on board the vessels to Indian Navy, a show cause notice was issued denying the benefit under Notification No. 64/95-C.E., dated 16-3-95 and demanding duty, interest and imposition of penalty. Vide the impugned order the Assistant Commissioner has dropped the proceedings. 3. Aggrieved by such dropping of the proceedings by the adjudicating authority, revenue preferred an appeal before the learned Commissioner (Appeals). Learned Commissioner (A....

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....o situation whether coffee power and food articles supplied to the Indian navy would also undergo some processes before they are actually consumed on the Board of the vessels of Indian navy. It is his submission that the order passed by the learned Commissioner (Appeals) be set aside and the order the adjudicating authority be restored. 5. Learned DR appearing on behalf of the appellant would submit that there is a clear cut difference between the 'ship stores' and 'stores' which are taken on board by the Navy. It is his submission that 'stores' are defined as goods for use in a vessel or aircraft and includes fuel and spare parts and other articles of equipment whether are not for immediate fittings. Therefore zinc ingots cleared do not....

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....id zinc ingots were for the use in a vessel of Indian Navy. If that be so, the benefit of Notification No. 64/95-C.E. cannot be denied to the appellant. We find that the adjudicating authority in his O-I-O has clearly held that as per Sl. No. 3 of the Notification No. 64/95-C.E., dated 16-3-95, the condition is that all goods other than cigarettes are supplied as stores for consumption on board a vessel of the Indian Navy or Coast Guard, they are eligible for exemption under the notification. On perusal of the certificate issued by the Indian Navy, we find that zinc ingots are for the consumption on board of the vessel of Indian navy. Whether the goods are consumed or not is not the concern of the appellant as long as the certificate is ....