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of <h1>Waiver of Central Excise Duty Granted in Shamken Spinners Case</h1> <h3>SHAMKEN SPINNERS LTD. Versus COMMISSIONER OF CENTRAL EXCISE, LUCKNOW</h3> SHAMKEN SPINNERS LTD. Versus COMMISSIONER OF CENTRAL EXCISE, LUCKNOW - 2001 (136) E.L.T. 169 (Tri. - Del.) Issues: Application for waiver of pre-deposit of Central Excise duty amount confirmed by the Commissioner (Appeals) under the impugned Order. Interpretation of Notifications No. 57/94-C.E. and 1/95 regarding exemption of High Speed Diesel Oil and Furnace Oil as fuel for generation of electricity in a 100% E.O.U.Analysis:1. Application for Waiver of Pre-Deposit:- The application was filed by M/s. Shamken Spinners Ltd. seeking a waiver of pre-deposit of Central Excise duty amounting to Rs. 71,64,792/- confirmed by the Commissioner (Appeals) under the impugned Order.- The Applicant, represented by Shri R. Swaminathan, argued that they are a 100% E.O.U. approved by the Board of Approval and were availing High Speed Diesel Oil and Furnace Oil under Notifications No. 57/94-C.E. and 1/95 as fuel for generating electricity used in manufacturing cotton/synthetic yarn for export.- The Additional Commissioner denied the benefit of the Notifications, which was upheld by the Commissioner (Appeals), stating that HSD Oil is not directly used in the manufacture of goods.- The Applicant contended that they obtained the oil without duty payment based on CT-3 certificates and used it as fuel, with permissions extending the benefit of Notification No. 1/95 still being issued.- Citing relevant case laws, the Applicant argued against the denial of benefits under the Notifications.2. Interpretation of Notifications No. 57/94-C.E. and 1/95:- Notification No. 1/95 exempts excisable goods when brought in connection with the manufacture and packing of articles into a 100% E.O.U., including Captive Power Plants, fuel, lubricants, and consumables recommended by the Board.- Similarly, Notification No. 57/94 provides exemption to fuel, as claimed by the Applicant for utilizing oils obtained without duty payment for generating electricity used in manufacturing final products for export.- The opposing argument emphasized that the electricity generated was used for other purposes as well, challenging the eligibility for the notification benefits.- Upon considering both sides, the Tribunal found that the Applicant had a strong prima facie case for waiver of pre-deposit as the evidence presented supported the use of HSD and Furnace Oil as claimed, with no evidence to the contrary provided by the Respondent.- Consequently, the Tribunal ordered the waiver of the entire duty amount and stayed the recovery during the appeal's pendency, scheduling a regular hearing for further proceedings.This detailed analysis of the issues involved in the judgment of the Appellate Tribunal CEGAT, New Delhi, provides a comprehensive understanding of the application for waiver of pre-deposit and the interpretation of relevant notifications regarding the exemption of specific oils as fuel for electricity generation in a 100% E.O.U. manufacturing setup.
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