1999 (4) TMI 455 - AT - Central Excise

Eligible to benefits under Notification No. 205/88-C.E. - Interpretation of Statutes - Boilers of specific design

Summary

Issues:
Coverage of exemption Notification Nos. 205/88 and 120/81.

Analysis:
The judgment dealt with three appeals concerning the coverage of exemption Notification Nos. 205/88 and 120/81, all involving the same point. The assessees claimed the benefit of exemption for "agricultural and municipal waste conversion devices producing energy." The Assistant Collector denied the benefit as the devices could use both designated waste and conventional fuels. However, the Collector (Appeals) found that the present notifications did not require exclusive use of designated fuels and distinguished between conventional and designated fuel boilers based on design and functionality. The boilers were certified to fall under the exemption by Chartered Engineers and the Chief Boiler Inspector, leading to the appeals from the revenue.

The main argument in the appeal memorandum was against the reliance on a Board Circular related to Fluidised Bed Combustion Boilers (FBCB), contending that it did not apply to the contested boilers. The Collector's order referred to the circular, emphasizing that even if conventional fuels could be used, the boilers designed for converting agricultural and municipal waste were eligible for the exemption. The judgment highlighted the importance of the Board's instructions and the certification by competent authorities in determining eligibility for the exemption.

Another issue raised was the interpretation of the exemption notifications. The argument was based on previous case law emphasizing strict interpretation of exemption notifications. The judgment discussed various cases where strict interpretation was upheld, emphasizing the need to interpret technical language by qualified individuals like Chartered Engineers and Chief Boiler Inspectors. The judgment also considered conflicting views on ambiguity resolution in taxation matters, ultimately finding no ambiguity in the interpretation of the notification due to the strict interpretation by the Board.

In conclusion, the Tribunal upheld the Collector's orders, stating they were based on the Board's Order under Sec. 37B of the Act. The judgment emphasized that the Collector's interpretation aligned with the Board's circular, dismissing the appeals from the revenue. The detailed analysis covered the technical aspects of the exemption notifications, the significance of certification by competent authorities, and the legal principles governing the interpretation of tax laws and notifications.