(1)  Imported stores specified in sub-section (3) may without payment of duty be consumed on board a ship of the Indian Navy.

   (2)  The provisions of section 69 and Chapter X shall apply to stores specified in sub-section (3) as they apply to other goods, subject to the modifications that--

   (a)  for the words "exported to any place outside India" or the word "exported" wherever they occur, the words "taken on board a ship of the Indian Navy" shall be substituted;

   (b)  for the words "ninety-eight per cent". in sub-section (1) of section 74, the words "the whole" shall be substituted.

   (3)  The stores referred to in sub-sections (1) and (2) are the following:--

   (a)  stores for the use of a ship of the Indian Navy;

   (b)  stores supplied free by the Government for the use of the crew of a ship of the Indian Navy in accordance with their conditions of service.