1988 (11) TMI 179 - AT - Central Excise

Summary

Issues:
- Interpretation of Notification No. 147/74-C.E., dated 30.10.1974 regarding the use of furnace oil as "Feed Stock" in the manufacture of fertilizers.

Detailed Analysis:

Appeal No. E/2227/87-C:
The appeal involved the respondent using furnace oil for purposes other than as "Feed Stock" in the manufacture of fertilizer, leading to a demand for Central Excise duty. The Assistant Collector confirmed the demand partially, which was further appealed to the Collector of Central Excise (Appeals), who confirmed the duty on a specific quantity of furnace oil. The Tribunal held that the use of furnace oil for generating steam during trial runs and commissioning of the urea plant did not qualify as "Feed Stock" under Notification No. 147/74-C.E., dated 30.10.1974, thus denying the exemption. Consequently, the appeal by the Department was allowed.

Appeal No. E/2228/87-C:
This appeal concerned a refund claim by the respondent for duty paid on furnace oil used as "Feed Stock" for generating steam in their factory. The Assistant Collector initially rejected the claim, but the Collector of Customs & Central Excise (Appeals) allowed the appeal. The Department appealed this decision. However, the Tribunal's decision in Appeal No. E/2227/87-C regarding the interpretation of "Feed Stock" under the same notification applied here as well. The Tribunal set aside the decision of the Collector of Customs & Central Excise (Appeals) and restored the Assistant Collector's order.

Appeal No. E/2229/87-C:
In this appeal, the respondent sought a refund for duty paid on Heavy Petroleum stock used for steam generation in their factory. The Assistant Collector rejected the claim, but the Collector of Customs & Central Excise (Appeals) allowed the appeal. The Department appealed this decision, and the Tribunal applied the same reasoning as in the previous appeals, denying the exemption based on the interpretation of "Feed Stock" under Notification No. 147/74-C.E., dated 30.10.1974. The Tribunal set aside the decision of the Collector of Customs & Central Excise (Appeals) and restored the Assistant Collector's order.

Appeal No. E/2230/87-C:
This appeal involved a refund claim for duty paid on lost materials during transit. The Assistant Collector partially allowed the claim, and the Collector of Customs & Central Excise (Appeals) further granted duty exemption on the quantity of furnace oil used for steam generation. The Department appealed this decision, and the Tribunal, following the interpretation of "Feed Stock" under Notification No. 147/74-C.E., dated 30.10.1974, denied the exemption for materials lost in transit. The Tribunal set aside the decision of the Collector of Customs & Central Excise (Appeals) and restored the Assistant Collector's order.

In conclusion, the Tribunal allowed all four appeals, setting aside the decisions of the Collector of Customs & Central Excise (Appeals) and restoring the orders of the Assistant Collector based on the interpretation that the use of furnace oil for purposes other than as "Feed Stock" did not qualify for duty exemption under Notification No. 147/74-C.E., dated 30.10.1974.