Duty-free EOU fuel exemption cannot extend to furnace oil for another unit's captive power plant.

A duty-free procurement exemption for a 100% Export Oriented Unit was confined to goods required for its own manufacturing activity. Furnace oil could not be brought within the generic term "consumables" so as to cover supply to another manufacturer's captive power plant, because the notification separately dealt with captive power plants, fuels for captive power plants, and furnace oil for boilers. That structure showed that the fuel benefit attached to the unit owning and operating the relevant plant or boiler, not to a purchaser of electricity or fuel for another unit. The claim for duty-free procurement therefore failed.

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Issues: Whether a 100% Export Oriented Unit could claim duty-free procurement of furnace oil as "consumables" under Notification No. 1/95 for supply to the captive power plant of another unit.

Analysis: The entitlement under the notification was confined to goods required for the EOU's own manufacturing activities. Although furnace oil may fall within the broader expression "consumables", the notification separately provided for captive power plants, fuels for captive power plants, and furnace oil for boilers. Those distinct entries showed that fuel exemption was linked to the unit owning and operating the relevant power plant or boiler, not to a consumer of electricity supplied by another manufacturer. The availability of an alternate reimbursement scheme for duty paid on fuels also supported a restricted construction of the notification.

Conclusion: The appellant was not entitled to duty-free procurement of furnace oil for supply to another manufacturer's captive power plant, and the claim failed.

Ratio Decidendi: Exemption under a duty-free import notification for an EOU is confined to goods required for its own manufacturing activity, and a generic entry for "consumables" cannot be stretched to cover fuel procured for use in another unit's captive power plant where the notification contains specific entries dealing separately with power plants and fuels.

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