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TMI Blog2007 (5) TMI 378X X X X Extracts X X X X X X X X Extracts X X X X ..... y they got registered as EOU. Furnace oil/LDO/HSD procured by appellants are covered under heading “consumable” in Notification No. 1/95 - appellant had correctly followed the provisions of Notification No. 1/95, as amended - appeal allowed - decided in favor of appellant. X X X X Extracts X X X X X X X X Extracts X X X X ..... d their employees. The appeals are against the said order. 3. Learned Advocate appearing on behalf of the appellant submits that there is no dispute about the use of the furnace oil, HSD and LDO. The condition of the export obligation was also fulfilled by the appellant. It is the submission that interpretation as sought to be done by the adjudicating authority as against the consumables is not correct. He relies on the decision of the Jayant Agro Organics Ltd. v. C.C.E., Vadodara as reported at 2003 (157) E.L.T. 684 (Tri-Mumbai) and Tata Tea Limited v. C.C.E., Kochi as reported 2004 (164) E.L.T. 315 (Tri-Del) for the proposition that the word 'consumable' in Notification No. 1/95 covers the fuel even for the period prior to the amend ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... resh entries for furnace oil (introduced in two stages, first for textile units and thereafter for all units) would be absurd and superfluous. It is significant that even after insertion of fresh entries for furnace oil, the entry consumables had not been qualified with expression 'excluding furnace oil' which would have been imperative if Government's view was to cover furnace oil for boiler in the category of consumables. Moreover, raw material, consumables and fuel are indicated as three distinct genres, contrary to these all being broad banded as raw materials or only as consumable. Each genre covers a separate category of goods. Fuel is distinct from consumables, though fuel does get consumed just as raw material is also consumed but i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, we hold that the furnace oil brought into the EOU and used in the boilers during 1-1-2000 to 21-5-2000 was exempt from payment of Central Excise duty in terms of Entry No. 7 of Annexure I to Notification No. 1/95-C.E., dated 4-1-95." We find that the issue is covered by the decision of the Tribunal in the case of Jayant Agro Organics Ltd. (supra) also, wherein the Tribunal has held as under: "4. After hearing both sides and considering the material on record and the submissions made. The appellants are challenging an interpretation, that by the amendment dated 15-9-98 to Notification 1/95 the benefit of duty free utilisation would be available under Serial No. 3(c) of the table to the notification only to furnace oil used for boil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the said list captioned "raw material", "consumable" against which the benefit was being availed, by the said appellants herein before the amendment came into effect vide Notification 31/98. (c) There is no material on record which demonstrated that furnace oil was indeed not a consumable and/or not a raw material, permitted under Entry Nos. 7 and/or 5 of the Notification 1/95 which remains the same before and after the amendment. The use of this furnace oil is to generate steam in the appellants' factory, which is thereafter used in relation to the process of distillation of the final product. Without the use of this steam, process of distillation cannot be carried out, and end products cannot be manufactured. Therefore, we ..... X X X X Extracts X X X X X X X X Extracts X X X X
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