2001 (9) TMI 622 - AT - Central Excise

Summary

Issues:
Denial of benefit under Notification No. 57/94-C.E. and 1/95-C.E. for HSD oil used in captive power plant.

Analysis:
The appeal was filed against the Order-in-Appeal denying the benefit of Notification No. 57/94-C.E. and 1/95-C.E. for HSD oil used in a captive power plant. The appellant, a 100% Export Oriented Undertaking engaged in manufacturing cotton yarn, received HSD oil without excise duty payment for their captive power plant. Show cause notices were issued, contending that HSD oil is not consumable or a raw material directly used in manufacturing excisable goods. The adjudicating authority upheld the demand.

Notification No. 57/94-C.E. allows bringing goods without duty payment for manufacturing and packaging, including captive power plants and their consumables as recommended by the Board. The appellant argued that the fuel for the captive power plant falls under this notification, rendering the impugned order unsustainable.

The notification was replaced by Notification No. 1/95-C.E., which exempts excisable goods for specific purposes like manufacturing in Export Oriented Undertakings. The appellant's case falls under this exemption. The Revenue denied the benefit citing HSD oil as non-consumable. However, the notification clearly includes fuels for captive power plants as eligible for exemption. Therefore, the denial based on the nature of HSD oil is unfounded.

In conclusion, the Tribunal set aside the impugned order, allowing the appeal in favor of the appellant. The denial of the benefit under the notifications for HSD oil used in the captive power plant was deemed unsustainable based on the clear provisions of the relevant notifications.