2000 (5) TMI 363 - AT - Central Excise

Summary

Issues:
Whether boilers manufactured by the respondents are exempt under Notification No. 120/81 and No. 205/88.

Analysis:
The appellate tribunal considered the dispute in a Revenue appeal regarding the exemption of boilers manufactured by the respondents under specific notifications. The Order-in-Appeal allowed the exemption based on the certification by the Inspector of Boilers that the boilers were designed for utilizing Agricultural and Municipal waste as fuel, which was not contested by lower authorities.

The Revenue, represented by the DR, argued that since the boilers could also use conventional fuel, they were more than just waste conversion devices. Additionally, they highlighted the certificate from the Chief Inspector of Steam Boilers stating the exclusive design for agricultural and municipal waste as fuel, referencing a relevant case law.

On the other hand, the respondents submitted cross objections, contending that the notification did not mandate exclusive reliance on waste fuel and presented the certificate from the Chief Inspector of Boilers confirming the specialized design for low-calorific agricultural waste fuels. They emphasized that the design was based on waste fuels like ground nut shell and coconut shell.

After reviewing the submissions and records, the tribunal noted that the notification did not specify exclusive use of waste fuel for the boilers. The certificate from the Chief Inspector of Boilers confirmed the specialized design for agricultural waste fuels, with provisions for specific waste types like Paddy Husk. The tribunal distinguished a previous case where the benefit of exemption was denied due to a design for coal use, unlike the current case's focus on non-conventional fuels.

Ultimately, the tribunal found no merit in the Revenue's appeal and upheld the order granting exemption to the boilers manufactured by the respondents. The decision was based on the specialized design for agricultural waste fuels as certified by the Chief Inspector of Boilers, leading to the rejection of the Revenue's appeal.