Notification No. 123/81-CE, dated 2-6-1981 as amended - Admissibility of the exemption in the case of High Speed Diesel oil (HSD) used by deep Sea Fishing trawlers approved as 100% EOUs - Central Excise - 85/2/87-CX.3

Notification No. 123/81-CE, dated 2-6-1981 as amended - Admissibility of the exemption in the case of High Speed Diesel oil (HSD) used by deep Sea Fishing trawlers approved as 100% EOUs F. No. 85/2/87-CX.3 Dated 21-7-1987 Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Notification No. 123/81-CE, dated 2-6-1981 as amended - Admissibility of the exemption in the case of High Speed Diesel oil (HSD) used by deep Sea Fishing trawlers approved as 100% EOUs. The question whether deep-sea fishing trawlers approved as 100% Export Oriented Units (EOUs) can be permitted the use of duty free high speed diesel oil (HSD Oil) in terms of Notification No. 123/81-CE, dated 2-6-1981, as amended, has been examined in this Ministry. HSD oil is used on the deep-sea fishing trawerls as fuel for running such trawerls which are engaged in catching fish. It is felt that though, strictly speaking, mere catching of fish from the sea may not amount to manufacture, the trawlers engaged in deep-sea fishing are actually equipped with deep freezing plant, processing plant for cleaning, cutting or unnecessary parts, and also, canning of processed fish. All these operations are carried out on board the vessel when the trawler is in deep sea so that by the time it arrives at the port of export, the frozen and processed fishload is exported after completing necessary export formalities. HSD oil is required not only for running the trawlers for catching the fish, but also in the course of processing the catch on board during the operation of the trawlers in the deep sea. Trawler in this case is actually in the nature of a 'floating factory'. It would, thus, appear, that HSD oil would be a necessary consumable for the purpose of such units and can be said to be used in connection with manufacture of articles for export on board the trawlers. 2. Therefore, the exemption be allowed to HSD oil required by deep sea fishing trawlers approved as 100% EOUs in terms of Notification No. 123/81-CE, dated 2-6-1981, as amended, provided all other conditions of the said notification are also satisfied.