2007 (4) TMI 534

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....nt company is a 100% EOU and are engaged in the manufacture and export of Terry Towels, Fabrics, made ups, Cotton and blended yarns. (ii)    They procured capital goods, raw material, consumables etc from indigenous sources without payment of duty availing the benefit of exemption under Notification No. 1/95-C.E., dated 4-1-95 as amended. (iii)   They also imported capital goods, raw materials, consumables etc duty free availing exemption under Notification No. 53/97-Cus., dated 3-6-97 as amended from time to time. (iv)   Notification No. 1/95-C.E., dated 4-1-95 was amended by Notification No. 31/98-C.E., dated 15-9-98 by which "furnace oil required for boilers used in textile unit" was specifically mad....

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.... Notification No. 1/95-C.E. and the amendment dated 26-6-98 to notification No.53/97-Cus. as redundant. He also submits that the fuels are used in the boilers to produce steam and they are not consumables used in the machinery. He also submits that any exemption notification being in nature of an exception, same is to be construed strictly and in case of any ambiguity, the issue has to be resolved in favour of Revenue. Learned advocate for the respondent submits that the issue of eligibility of exemption for furnace oil procured by 100% EOU has been decided by the Tribunal in case of Jayant Agro Organics Ltd. v. CCE, Vadodara reported in 2003 (157) E.L.T. 684 (Tri-Mumbai) and also in case of Tata Tea Ltd. v. CCE, Kochi reported in 2004 (16....