Consumable exemption for light diesel oil used in chilling plant upheld under Notification No. 1/95-C.E.

Light diesel oil obtained under CT3 and used in a chilling plant for temperature control by a 100% export oriented unit was treated as a "consumable" under Notification No. 1/95-C.E. The separate entries for fuel and furnace oil in Sr. Nos. 3(b) and 3(c) were not read as excluding the goods from the wider consumable entry in Sr. No. 7 of Annexure I, so the exemption was held admissible. The departmental limitation objection was noted but was not the basis of the decision, and the department's appeal failed.

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Issues: Whether light diesel oil obtained under CT3 and used in the chilling plant for temperature control by a 100% export oriented unit was eligible for exemption as a consumable under Notification No. 1/95-C.E. dated 04.01.1995.

Analysis: The goods in question fell within the description of "consumable" in Sr. No. 7 of Annexure I to Notification No. 1/95-C.E. The separate entries relating to fuel and furnace oil under Sr. Nos. 3(b) and 3(c) were not treated as excluding the goods from the wider consumable entry in the facts of the case. On that basis, the exemption claimed by the respondent was held to be admissible. The limitation objection raised by the department was not the basis of the decision.

Conclusion: The light diesel oil was held eligible for exemption as a consumable under Notification No. 1/95-C.E., and the department's appeal failed.

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