2006 (6) TMI 334 - AT - Central Excise

Summary

Issues:
1. Challenge to Order-in-Original confirming demands on Aviation Turbine Fuel (ATF) supplied to international and domestic flights.
2. Claim of benefit of Notification No. 46/94-C.E. (N.T.) for rebate of duty on ATF supplied to international flights.
3. Interpretation of Circulars issued by the Board regarding eligibility for duty-free supply of fuel to foreign-going aircrafts.
4. Time bar on demands and applicability of exemption Notification.

Analysis:
1. The appellant, a PSU, challenged the Order-in-Original confirming demands on ATF supplied to international and domestic flights. They claimed the benefit of Notification No. 46/94-C.E. (N.T.) for rebate of duty on ATF supplied to international flights, which was denied in the impugned order.

2. The appellant contended that ATF supplied to foreign-going aircraft of Air India entitles them to claim rebate of duty paid. They argued for a reduced rebate amount as per relevant Notifications. The rejection of the benefit was deemed unjustified, citing Board Circulars supporting their claim.

3. The Circulars issued by the Board were crucial in determining the eligibility for duty-free supply of fuel to foreign-going aircrafts. The appellant relied on subsequent Circulars clarifying the issue, which led to the acceptance of their position by the Commissioner (A) in a subsequent order.

4. The appellant also raised the issue of time bar on demands, asserting that all relevant facts were known to the Department, and cited precedents to support their claim. The Tribunal found the denial of the benefit of Notification and confirmation of demands unjustified, ruling in favor of the appellant on both grounds and allowing the appeal with consequential relief.

This detailed analysis of the judgment highlights the key issues involved, the arguments presented by the parties, and the Tribunal's findings, providing a comprehensive understanding of the legal implications and reasoning behind the decision.