Exemption for furnace oil under amended notification upheld where approval and CT-3 conditions were satisfied.

The amended exemption notification covered fuel, lubricants and consumables under Item 3B of Annexure I for goods specified in Items 3 and 3A, subject to approval by the Commissioner of Customs on the recommendation of the Development Commissioner. Furnace oil issued after such approval and against the CT-3 certificate satisfied the notification conditions, and no procedural violation was found. On that basis, the exemption could not be denied on the Revenue's objection, and the furnace oil remained eligible for the notification benefit.

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Issues: Whether furnace oil obtained by the assessee was eligible for exemption under Notification No. 1/95-C.E. dated 04-01-1995, as amended by Notification No. 31/98 dated 15-09-1998.

Analysis: The notification, as amended, specifically brought fuel, lubricants and consumables within Item 3B of Annexure I for goods specified in Items 3 and 3A, subject to approval by the Commissioner of Customs on the recommendation of the Development Commissioner. The furnace oil in question was issued only after such approval and against the CT-3 certificate, and there was no finding that any procedural condition of the notification had been violated. The exemption could not be denied on the ground urged by the Revenue, since furnace oil was covered by Item 3B and the assessee had satisfied the notification conditions.

Conclusion: The furnace oil was eligible for the benefit of the notification and the Revenue's objection failed.

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