2001 (3) TMI 480 - AT - Central Excise

Summary

Issues Involved:
Interpretation of Notification No. 1/95 and 10/95 for 100% EOU engaged in aqua culture industry regarding the utilization of duty-free items.

Analysis:

Issue 1:
The primary issue in this case was the confirmation of a demand on the appellants, a 100% EOU engaged in processing and exporting prawns, for utilizing HSD Oil and Lube procured duty-free during a specific period. The Commissioner upheld the demand under Section 11A of the Act, despite the appellants' argument that they were eligible for the benefit of Notification No. 1/95 dated 4-1-1995. The appellants cited various judgments to support their contention, but the Commissioner did not agree. The Tribunal had previously examined a similar issue in a competitor industry and granted relief to the assessee based on the interpretation of the relevant Notifications.

Issue 2:
The Tribunal analyzed the applicability of Notification No. 1/95 and 10/95 in the context of the appellants' case. The Tribunal considered the judgments cited by the appellants and noted that when multiple Notifications are available, the choice remains with the assessee, and they cannot be compelled to choose a particular Notification. The Tribunal found no restrictions in Notification 1/95 or 10/95 that would exclude 100% EOU engaged in aqua culture from availing benefits. The Tribunal disagreed with the Commissioner's findings and set aside the impugned order, allowing the appeal based on the precedent set in the earlier case.

Conclusion:
The Tribunal, after thorough consideration of the facts and legal precedents, set aside the impugned order and allowed the appeal in favor of the appellants. The Tribunal applied the ratio of the earlier judgment in a similar matter and concluded that the appellants were entitled to the benefit of Notification No. 1/95 and that the demand confirmed by the Commissioner was not sustainable. The decision highlighted the importance of interpreting Notifications in a manner that upholds the rights of the assessee and ensures fair treatment under the law.