Duty-free procurement of furnace oil upheld where settled precedent treated it as eligible consumable under the notification.

Furnace oil purchased and consumed by the assessee's unit was held eligible for duty-free procurement under Notification No. 1/95-CE, as the issue had already been decided against the Revenue in an earlier ruling on the same question. The court noted that the earlier view had been carried to the Supreme Court and not accepted, and found no separate basis to depart from that settled position. The assessee's claim was therefore upheld and the Revenue's objection rejected.

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Issues: Whether furnace oil purchased and consumed by the assessee's unit could be treated as raw material or consumable so as to qualify for duty-free procurement under Notification No. 1/95-CE.

Analysis: The question had already been answered against the Revenue in an earlier decision on the same issue, which was noted to have been carried to the Supreme Court and not accepted. In that background, no separate ground remained to depart from the settled view on eligibility for duty-free procurement of furnace oil by the assessee's unit.

Conclusion: The issue was answered in the negative and against the Revenue, with the benefit claimed by the assessee upheld.

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