2009 (1) TMI 715 - AT - Central Excise

Summary

Issues:
1. Appeal against order granting relief on merits and limitation.
2. Dispute over exemption of furnace oil procured by 100% EOU.
3. Interpretation of Notification No. 1/95 for exemption eligibility.

Analysis:
1. The appeal was filed by the revenue against an order granting relief to the respondents on merits and limitation. The dispute centered around the furnace oil procured by the appellants against a CT3 certificate claiming exemption under Notification No. 1/95. The appellate authority, following a precedent decision, ruled that the furnace oil was not consumable and thus not eligible for the exemption. Additionally, it was noted that the procurement of the disputed furnace oil was done with proper documentation and under the knowledge of Central Excise authorities, ruling out any suppression of information to justify a longer period for invoking the limitation.

2. The Tribunal agreed with the Commissioner (Appeals) on the point of limitation and further emphasized that the issue regarding the eligibility of furnace oil for exemption was no longer a matter of debate, as it had been settled in various Tribunal decisions. Citing the case of Commissioner of Central Excise, Valsad v. Welspun Terry Towels, it was established that furnace oil used by a 100% EOU is considered consumable and therefore qualifies for exemption under Notification No. 1/95-C.E. Given the settled nature of the issue and the supporting precedents, the Tribunal found no merit in the revenue's appeal and subsequently rejected it.

3. The judgment, delivered by Ms. Archana Wadhwa, Member (J), concluded by pronouncing the rejection of the revenue's appeal, thereby upholding the order granting relief to the respondents based on the settled interpretation of the law regarding the eligibility of furnace oil for exemption under Notification No. 1/95-C.E.