TaxTMI 
TaxTMI 
2007 (5) TMI 378
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....pellant company M/s. Haryana Sheet Glass was a 100% EOU, engaged in the manufactured of sheet glass. The appellant company had been granted Industrial licence by the Department of Industrial Development under EOU scheme. The appellant was availing the benefit of exemption Notification No. 1/95-C.E. dated 4-1-1995 as EOU. The appellant procured furnace oil, HSD and LDO under Notification No. 1/95 after following the proper procedure as laid down in the said Notification. Show cause notice was issued to the appellant in June, 2001 directing them to show cause as to why the benefit of Notification No. 1/95 be not denied to them on the ground that the items like furnace oil, LDO, HSD do not fall in the category of consumable for which they had ....
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.... to the amendment to the Notification. 4. Learned SDR appearing for the revenue submits that at no stretch of imagination fuel can be considered as consumable. It is his submission that subsequent to the amendment to the Notification No. 1/95, would indicate that fuel was a separate item and hence the benefit of the inclusion of fuel in notification will be applicable from the date of amendment. 5. Considered the submissions made by both sides at length and perused record. It is undisputed that furnace oil/LDO/HSD was being procured under Notification No. 1/95. It is also undisputed that the appellant had consumed the same in the manufacture of final products, which were subsequently exported. The appellant had fulfilled export ....
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....onsumed but is placed in a separate category. Therefore, the correct view will be that furnace oil, HSD & LDO were not covered under the term consumables used in the Central Excise Notification mentioned in the show cause notice and therefore, the exemption was wrongly availed by the assessee. Therefore, I hold that M/s. Haryana Sheet Glass Ltd., became entitled for duty free procurement of furnace oil, HSD & LDO only from 22-5-2000." 6. It can be seen from the above reproduced portion of the order in original that adjudicating authority has denied the benefit of Notification 1/95 to fuel, holding that the "consumable" does not include "fuel". An identical question was before the Division Bench of the Tribunal in the case of Tata Tea ....
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....used for boilers in an 100% EOU of textiles would only be eligible and not to an EOU using furnace oil to generate steam used in and essentially required in the distillation of the oils in the appellants unit i.e. used as a consumable or and raw material permitted under Serial Nos. 5 & 7 of the same table. It is termed: (a) The amendment dated 15-9-98 to the Notification vide Notification 31/98 added the following entries in the table to Notification 1/95. "3. Captive power plants, including captive generating sets of a capacity exceeding 1000 KVA and the spares for such plants and sets as recommended by the said board. 3A. Captive power plants, including captive generating sets, up to a ca­pacity of....