1988 (2) TMI 246 - AT - Central Excise

Summary

Issues:
Eligibility of the respondent for exemption under Notification 123/81 as amended by Notification 152/85-C.E. for High Speed Diesel oil (HSD) used in a special purpose dumper for carrying crude ore.

Analysis:
The appeal concerned the eligibility of the respondent for exemption under Notification 123/81, as amended, for using High Speed Diesel oil (HSD) in a special purpose dumper for transporting crude ore. The Assistant Collector found against the respondent initially, but the Collector (Appeals) later ruled in favor of the respondent. The central issue was whether the use of HSD oil in the operation of dumpers could be considered as "used in the manufacture of articles meant for export" as per the notification. The conditions of the notification, such as the unit being 100% export-oriented, were fulfilled. The debate revolved around whether the respondent's use of HSD oil qualified for exemption under the notification.

During the hearing, it was argued that the use of HSD oil for generating electricity, which in turn powered the operation of dumpers, did not meet the criteria of being "used in the manufacture of articles meant for export." The respondent relied on a Supreme Court decision in a similar context to support their position. The notification exempted excisable goods when brought in connection with the manufacture of articles into an approved undertaking. The Tribunal referred to the Supreme Court's decision in a mining case and concluded that the use of HSD oil in the respondent's operations fell within the scope of the notification's language. The Tribunal upheld the decision of the Collector (Appeals) and dismissed the appeal by the Revenue.

In summary, the Tribunal determined that the respondent was eligible for the exemption under the notification for using HSD oil in the special purpose dumper for transporting crude ore. The decision was based on the interpretation of the notification's language and previous legal precedents, including a Supreme Court decision in a mining case. The appeal by the Revenue was dismissed, affirming the ruling in favor of the respondent.