Clean Power Co., a 100% export oriented undertaking (100% EOU) imported DG sets and furnace oil duty-free, for setting-up captive power plant for its power requirements for export production. They used the power so gener

The facts of the given case are similar to the case of Commissioner v. Hanil Era Textiles Ltd. 2005 (180) ELT A44 (SC) , wherein the Supreme Court observed that in the absence of a restrictive clause in the notification that imported goods are to be solely or exclusively used for manufacture of goods for export, there is no violation of any conditions of notification, if surplus power generated due to unforeseen exigencies is sold in domestic tariff area. Therefore, no duty can be demanded from Clean Power Company for selling surplus power in domestic tariff area for the following reasons: They have used the Diesel Generator sets and furnace oil imported duty free for generation of power; Such power generated has been used for manufacturing goods for export; and Only the surplus power has been sold, as power cannot be stored.