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TMI Blog2011 (11) TMI 558X X X X Extracts X X X X X X X X Extracts X X X X ..... producing steam and steam was consumed in manufacture of terry towels. That being the situation, the meaning given by the Commissioner (Appeals) to the word “consumable” is only a proper interpretation - Following decision of assessee's own previous case [2007 (10) TMI 303 - SUPREME COURT OF INDIA] - Decided against Revenue. - E/2210/2005 - Final Order No. 962/2011-EX(PB) - Dated:- 22-11-2011 - Shri D.N. Panda and Mathew John, JJ. Shri I. Baig, DR, for the Appellant. Shri R. Krishnan, Advocate, for the Respondent. ORDER The respondents are working as 100% Export Oriented Undertaking engaged in the manufacture of terry towels. They obtained furnace oil without payment of excise duty claiming the benefit of Notification No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essories and spares thereof. 10. Prototypes, technical and trade samples for development and diversification. 11. Drawing, blue prints and charts. 2. Furnace oil was procured by the respondents for producing steam which in turn was used in the manufacturing process of terry towels. Revenue was of the view that furnace oil will not fall under any of the 11 items specified in Annexure-I to the notification as reproduced above and the respondents were not eligible for the said exemption to procure furnace oil without payment of excise duty. Based on such argument, a show cause notice was issued to the respondents demanding excise duty amounting to Rs. 12,05,504/- on furnace oil obtained by them from the manufacturers against CT- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lants. Since the respondents did not have any captive power plant this provision would not apply to the respondents. He further points out that the notification was amended by Notification No. 31/98-C.E., dated 15-9-1998 to add new entries viz. 3B and 3C in Annexure-I to Notification 1/95-C.E. The said entries read as under : 3B. Fuel, lubricants and consumables for goods specified at items 3 and 3A, as approved by the Commissioner of Customs on the recommendation of the Development Commissioner. 3C. Furnace oil required for the boilers used in the textile units as approved by the Commissioner of Customs on the recommendation of the Development Commissioner. 4. The argument of the A.R. thus is that the furnace oil needed for produci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... brings furnace oil used in boilers by textile units within the scope of the original notification. But that cannot be a reason to infer that such goods were not covered prior to such amendment. His contention is that furnace oil was covered within the meaning of consumables. He relies on Board s Circular 21/97-Cus., dated 24-6-1997 clarifying that EOUs can obtain furnace oil without payment of customs duties. He also relies on the following decisions :- (i) Jayant Agro Organics Ltd v. CCE - 2003 (157) E.L.T. 684 (Tri.) as affirmed by Supreme Court as reported at 2009 (238) E.L.T. A24 (S.C.); (ii) Vanasthali Textile Industries v. CCE - 2007 (218) E.L.T. 3 (S.C.). 7. Further, he argues that the show cause notice was issued on the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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