Consumable goods under export incentive notification: factual finding on fuel inputs sustained the notified benefit.

Furnace oil, light diesel oil and high speed diesel used by a 100% export-oriented unit in manufacturing glass sheets were treated as consumable goods under Notification No. 1/95 because the Tribunal recorded a factual finding that the inputs were consumables. Since the notification covered consumable goods in Annexure I, that finding brought the goods within the scope of the benefit and justified its extension. The notified benefit was therefore correctly granted to the assessee, and the appeals failed.

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Issues: Whether furnace oil, light diesel oil and high speed diesel used by a 100% export-oriented unit in manufacturing glass sheets were covered as consumable goods under Notification No. 1/95 dated 04.01.1995 and eligible for the notified benefit.

Analysis: The notification extended benefit in respect of goods mentioned in Annexure I, which included both raw materials and consumable goods. The Tribunal had recorded a finding of fact that the disputed inputs could be treated as consumables. That factual finding brought the goods within the scope of the notification and justified extension of the benefit.

Conclusion: The benefit under Notification No. 1/95 dated 04.01.1995 was correctly extended to the assessee; the appeals failed.

Ratio Decidendi: Where the Tribunal records a factual finding that the goods used in manufacture are consumables, and the exemption notification covers consumable goods, the notified benefit cannot be denied.

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