TaxTMI 
TaxTMI 
2005 (5) TMI 210
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....ds of the case and carefully considered the different submissions, written as well as oral, advanced by/on behalf of M/s. Synergies Dooray Automotive Ltd. and Shri AKS Murthy. The main issue to be decided, in these proceedings is whether M/s. Synergies Dooray Automotive Ltd. are entitled to receive HSD oil without payment of duty under Not. No. 126/94-C.E., dated 2-9-94 for use as fuel for fork lifts, the material handling equipments, in the manufacture/production process like heat treatment line, dye preheating system, paint line materials etc. 8. Notification No. 126/94-C.E., dated 2-9-1994, as amended, exempts the excisable goods specified in annexure I to the notification when required for use by units located in any Export Processin....
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....s, jigs, gauges....... 10. Prototype.......... 11. Drawings......... The question to be answered is whether the HSD oil procured by M/s. Synergies Dooray Automotive Ltd. without payment of duty for use as fuel for fork lifts, in the manufacture/production process like heat treatment line, dye preheating system, paint line materials etc. is covered by Not. No. 126/94-C.E. dated 2-9-1994, as amended. 9. A plain reading of Not. No. 126/94-C.E., dated 2-9-1994, as amended makes it clear that in order to get the benefit of the notification two conditions are required to be satisfied:- (i) The goods shall be for the production or manufacture of articles for export out of India; or for....
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.... Captive power plant including captive generating sets. Such approval is not required for the procurement of raw materials, components, consumables etc. required for or in connection with the production or manufacture of the export products. M/s. Synergy Dooray Automotives Ltd. require HSD oil for the captive generating sets as well as for use in their manufacturing lines explained above. When approval of the DC/Asst. Commissioner of Customs is required for procuring HSD oil for use in their captive generating sets, such approval is not required for use of such HSD oil in their manufacturing line. Just because M/s. Synergy Dooray Automotives Ltd. had taken approval from the Development Commissioner for procurement of HSD oil, there is no co....
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....g permission from the Development Commissioner has been used for the purposes of other than for captive generating sets. Non-fulfilment of this obligation is a clear violation of conditions of the notification. It is contended that the article exported by the assessee is Aluminium Alloy Wheel. The fork-lift for which the fuel is used is procured in the status of material handling equipment and that the notification does not provide for exemption to consumables of material handling equipment since they are not exportable products by the assessee. The fuel used in fork lift does not fit in the definition of "consumables" as defined in the Import & Export Policy. "Consumables" has been defined as "any item which participates in or is required ....