https://www.taxtmi.com/caselaws?id=788877 An exemption notification tied to intended use was construed to require procurement and use for the stated manufacture, not exclusive or directly traceable consumption in each end-product unit. Naphtha obtained on CT-2 certificates for fertilizer and ammonia production did not lose exemption merely because it was used as supplementary fuel in an integrated steam-generation system serving multiple plant units, where the electricity generated was largely deployed in fertilizer operations. The extended limitation period and penalty depended on fraud, suppression or intent to evade duty; mere disagreement on exemption eligibility or difficulty in segregating fuel use was insufficient, especially in a revenue-neutral setting. On that basis, the demand, interest and penalties were set aside. en-us Tue, 24 Mar 2026 00:00:00 +0530 Tue, 31 Mar 2026 08:27:05 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=788877 An exemption notification tied to intended use was construed to require procurement and use for the stated manufacture, not exclusive or directly traceable consumption in each end-product unit. Naphtha obtained on CT-2 certificates for fertilizer and ammonia production did not lose exemption merely because it was used as supplementary fuel in an integrated steam-generation system serving multiple plant units, where the electricity generated was largely deployed in fertilizer operations. The extended limitation period and penalty depended on fraud, suppression or intent to evade duty; mere disagreement on exemption eligibility or difficulty in segregating fuel use was insufficient, especially in a revenue-neutral setting. On that basis, the demand, interest and penalties were set aside. Case-Laws Central Excise Tue, 24 Mar 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=788877