Kerosene exemption for illuminant use denied where stock was cleared exclusively for industrial purposes.

Kerosene qualified for concessional duty under the exemption notifications only if it was ordinarily used as an illuminant in oil burning lamps. The expression "ordinarily" was given a contextual and socio-economic meaning, referring to use in the majority of cases rather than in every instance. Kerosene supplied through the Public Distribution System to domestic consumers met that description because its common use was for illumination. Kerosene cleared exclusively to industrial users did not, because it was wholly diverted to industrial purposes and could not satisfy the notification condition. The concessional rate was therefore unavailable for that stock, and duty at tariff rates applied.

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Issues: Whether kerosene cleared to industrial users during the relevant period qualified for the concessional rate of duty under Notifications 5/98-C.E. and 5/99-C.E. as kerosene ordinarily used as an illuminant in oil burning lamps.

Analysis: The relevant tariff entry classified kerosene under CSH 2710.90 without regard to end use, but the exemption notifications granted concession only to kerosene that was ordinarily used as an illuminant in oil burning lamps. The expression "ordinarily" was construed in its contextual and socio-economic sense, meaning use in the majority of cases and not invariably. Kerosene supplied through the Public Distribution System to domestic consumers satisfied that description because its common use was for illumination. By contrast, the stock cleared to industrial users was wholly diverted to industrial purposes, and neither its overall share in total production nor its suitability for lamp use could establish that this stock was ordinarily used as an illuminant in oil burning lamps.

Conclusion: The industrial-clearance stock did not satisfy the notification condition and was not entitled to the concessional rate of duty.

Final Conclusion: The duty demand at tariff rates was sustained and the assessee's challenge to denial of exemption failed.

Ratio Decidendi: An exemption for kerosene "ordinarily used as an illuminant in oil burning lamps" applies only to the stock answering that description in fact and context, and not to kerosene cleared exclusively for industrial use.

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