TMI Blog2007 (4) TMI 534X X X X Extracts X X X X X X X X Extracts X X X X ..... anarayanan, Advocate, for the Respondent. [Order per : M. Veeraiyan, Member (T)]. These appeals by the Department are against the order of Commissioner in F. No. V Adj (SCN)(AEM) 15-39/2001, dated 14-2-2002. 2. Heard both sides. 3. The relevant facts, in brief, are as follows : (i) The appellant company is a 100% EOU and are engaged in the manufacture and export of Terry Towels ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r to the above amendments, appellant company was procuring importing furnace oil required for boilers without payment of duty claiming them as consumables which was one of the entries covered by Notification No. 1/95-C.E., dated 4-1-95 and Notification No. 53/97-Cus., dated 3-6-97. (vi) The excise authorities felt that as the furnace oil have been made specifically eligible for exemption by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the interpretation of the Commissioner are not legal and it makes the amendment dated 15-9-98 to Notification No. 1/95-C.E. and the amendment dated 26-6-98 to notification No.53/97-Cus. as redundant. He also submits that the fuels are used in the boilers to produce steam and they are not consumables used in the machinery. He also submits that any exemption notification being in nature of an e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duty claiming them as consumables. During the relevant period, the Development Commissioner has granted permission for procurement of the furnace oil as consumables in terms of the policy governing 100% EOU. Whether the furnace oil can be considered as consumable for the purpose of notification No. 1/95 has been decided in the case of Jayant Agro Organics Ltd. and also in case of Tata Tea Ltd. cit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore, we hold that the furnace oil brought into the EOU and used in the boilers during 1-1-2000 to 21-5-2000 was exempt from payment of Central Excise duty in terms of Entry No. 7 of Annexure-I to Notification No. 1/95-C.E., dated 4-1-95. Similar view has been expressed in the case of Jayant Agro Organics Ltd. cited supra. 5. The ratio of the above decisions are applicable to the present case ..... X X X X Extracts X X X X X X X X Extracts X X X X
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