TMI Blog2003 (9) TMI 133X X X X Extracts X X X X X X X X Extracts X X X X ..... ured the fuel namely "Furnace Oil" without payment of duty under CT-3 certificates issued, after due compliance of the conditions of the notification. 2. It was noticed that vide amendment dated 15-9-98, Notification No. 1/95-C.E. was amended and the benefit of duty free clearance availed in respect of furnace oil processed by this 100% EOU unit was questioned. By issue of a show cause notice demanding duty on furnace oil so procured brought and used by the 100% EOU unit during the period 1-3-2000 to 4-7-2000, this duty was proposed to be recovered from the appellants and not the manufacturer of furnace oil. 3. The Commissioner (Appeals), against an appeal filed on confirmation of the demands by the lower authority, found : "The Annex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with the meaning as it emerges from the plain reading of Notification 1/95 which uses the word fuel as distinct from consumable and raw materials and there is no specific definition assigned either in this Notification or in the Central Excise Act or Rules under which the Notification is issued to arrive at the meaning as sought to be given to the term consumable/raw material by the appellant. The Notification 1/95 was amended by Notification 31/98 which replace the existing Para 3 with the new Para 3 plus Paras 3A, 3B and 3C as reproduced above. Para 3C gives exemption to furnace oil used as fuel in boilers in textile units only. The scope of the exemption for furnace oil used as fuel is confined only to use by textile units and none else ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing entries in the table to Notification 1/95. "3. Captive power plants, including captive generating sets of a capacity exceeding 1000 KVA and the spares for such plants and sets as recommended by the said board. 3A. Captive power plants, including captive generating sets, up to a capacity of KVA and the spares for such plants and sets as recommended by the Development Commissioner. 3B. Fuel, lubricants and consumable for goods specified at items 3 and 3A as approved by the Commissioner of Customs on the recommendation of the Development Commissioner. 3C. Furnace oil required for the boilers used in the textile units as approved by the Commissioner of Customs on the recommendation of the Development Commissioner". (b) The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has been brought and used for the manufacture of final products, which have been exported by the EOU. Therefore, there is no doubt that the said goods would be covered by the word "raw material" and/or "consumable" in this case. (d) In the case of Water Base Limited v. CC, Guntur [2001 (130) E.L.T. 386 (Tri. - Chennai)] had held that if the benefit was available under two or more notification, Revenue could not force to choose a particular notification on the assessee, which has been followed in the case of Rank Industries v. CCE, Guntur [2001 (133) E.L.T. 674 (T) = 2001 (44) RLT 298]. In this case, it is not a question of dealing with two notifications, eligibility, but it is in case of coverage under different Serial numbers en ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... structions issued by the board on 3-4-2003 wherein furnace oil was considered to be a consumable in contest of an EOU Notification and have claimed the same to be a binding on the department. The dispute herein is for a period, earlier to this clarification. However, "furnace oil" being not a consumable, is not the reason for which, benefit has been denied by the lower authorities. There appears no dispute on that aspect. (f) There is force also in the argument being made that there is no allegation of furnace oil not having been received and/or used in the EOU and EOU notifications should be interpreted in a broad manner being beneficial notification, to achieve the intended object of export promotion as also in the argument tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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