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3. The Commissioner (Appeals), against an appeal filed on confirmation of the demands by the lower authority, found:

"The Annexure to the Notification 1/95 in para 3 distinguishable spares, fuels, lubricants from other consumables for captive power plants including generating sets. The use of separate words to cover fuel and consumable clearly indicates that the two are not inter changeable otherwise there would be no purpose in using two words when a single word would cover both the items. Notification viz., 1/95 which clearly distinguishes between fuel and consumable. Prima facie the meaning therefore is that the two are independent separate words, having different meanings. The same applies to the assessee's plea to treat it as raw material. The process of manufacture as explained by he assessee does not indicate its use as a raw material/input in the manufacturing of Refined Castor Oil but only as a fuel used in the boiler to generate steam which is used in the distillation of the final product. Prima facie therefore neither the word consumable nor the word raw material appearing in para 5 and 7 to the notification would cover furnace oil used as a fuel. It is settled law that the scope of any notification, statute or Rule is not to be extended by inference or presumption but the meaning is to be derived from the common every day meaning of the language used, unless specific definition/meaning are assigned in the said notification, statute or rule. The meaning sought to be given to the words raw material and consumable so as to include in their ambit furnace oil used as fuel is not in consonance with the meaning as it emerges from the plain reading of Notification 1/95 which uses the word fuel as distinct from consumable and raw materials and there is no specific definition assigned either in this Notification or in the Central Excise Act or Rules under which the Notification is issued to arrive at the meaning as sought to be given to the term consumable/raw material by the appellant. The Notification 1/95 was amended by Notification 31/98 which replace the existing para 3 with the new para 3 plus para 3A, 3B and 3C as reproduced above. Para 3C gives exemption to furnace oil used as fuel in boilers in textile units only. The scope of the exemption for furnace oil used as fuel is confined only to use by textile units and none else and the appellant is admittedly not a textile unit. The issue has been further clarified by CBEC vide their letter 305/4/2000-FTT dated 11.02.2000 wherein the CBEC clarified that furnace oil required for use in boilers in units other than textile units will not qualify for the exemption under Notification 1/95 dated 04.01.95. It further clarifies that furnace oil used in boilers for generating steam where steam is essential for the manufacturing process in units other than textile units would not be eligible for the benefit under the category of "consumable" in view of the specific entry of the furnace oil used in the boiler in the Notification as explained above." and, therefore, rejected the appeal. Hence the present appeal.
(a) The amendment dated 15/09/98 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, upto a capacity of KVA and the spares for such plants and sets as recommended by the Development Commissioner.
3B. Fuel, lubricants and consumable for goods specified at item 3 and 3A as approved by the Commissioner of Customs on the recommendation of the Development Commissioner.