COLLECTOR OF CENTRAL EXCISE Vs. IMPREG AND INSULATIONS

JUDGEMENT

(1.) THE Revenue filed this appeal against the order -in -appeal dated 26 -4 -1995 passed by the Collector of Central Excise (Appeals), New Delhi.

(2.) BRIEF facts of the case are that the respondents are engaged in the manufacture of unsaturated polyester resins falling under sub -heading 3937.91 of the Central Excise Tariff Act, 1985. The respondents claimed exemption from excise duty under Notification No. 70/77, dated 7 -5 -1977 on 1600 kgs. of unsaturated polyester resins. A show cause notice was issued to the respondents stating therein that the benefit of Notification No. 70/77 is not available to the goods, in question, as the goods were not supplied to the Indian Navy as stores on board. The adjudicating authority dropped the proceedings. The Revenue filed the appeal and the same was rejected.

(3.) LD . J.D.R., appearing on behalf of the Revenue, submits that the notification provides exemption from payment of central excise duty on the goods supplied as stores on board a vessel of Indian Navy. He submits that the goods were not directly supplied to the Indian Navy but the good, in question, were supplied by the respondents to one M/s. Sagar Manthan Hitaishi, New Delhi and M/s. Sagar Manthan Hitaishi used these goods in the manufacture of whalers and these whalers were supplied to the Indian Navy. He submits that the goods, in question, were not supplied to the Indian Navy as stores for consumption on board. He, therefore, prays that the appeal be allowed.