TaxTMI 
TaxTMI 
2008 (3) TMI 275
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....16-3-95, Sr. No. 3 of which allows exemption to the goods, if supplied as Stores for consumption on board a vessel of the Indian Navy or Coast Guard. The said exemption is on the condition of production of a certificate from the proper officer of the Indian Navy. There is no dispute that the said certificate stand produced by the appellant. However, the benefit stand denied on the ground that the plates and sheets cleared by the appellant during the period Feb.'06 to Jan. '07, in terms of the said notification, cannot be extended .the benefit inasmuch as they cannot be considered as "Stores". The adjudicating authority has observed that MS plates are, in fact, raw material and are not covered by the expression "Stores". He has also observed....
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....s. Now the problem is that the lower authority is of the view that an item having a long life cannot be considered as an item of consumption. The word 'consumption' is the noun form of the verb 'to consume'. According to the dictionary, the word 'consume' means to use something. A consumer uses various types of goods, even goods which have very long life. That is why the expression 'consumer durables' is quite popular. Normally, an equipment will have a long life. On that count, we cannot say that they cannot be treated as item of consumption on board the vessel. So long as they are meant for use in the vessel, it should be considered that they are consumed in the vessel. To conclude, we hold that a very restrictive meaning to the above ter....