2008 (2) TMI 724 - AT - Central Excise

Summary

Issues involved: Impugned demand on the appellant Public Sector Unit for using inputs in the production of coke oven gas chargeable to nil rate of duty.

Summary:
The Appellate Tribunal CESTAT, Kolkata, heard the appeal regarding the impugned demand on the appellant Public Sector Unit for using inputs in the production of coke oven gas chargeable to nil rate of duty. The appellant explained that the impugned inputs were not utilized in the production of coke oven gas but were used for deriving by-products like benzene and toluene from the gas. The Tribunal, after considering the technical process involved, concluded that the impugned inputs had no role in the production of coke oven gas but were used solely in the production of the by-products. Therefore, the impugned order demanding payment in relation to coke oven gas was set aside, granting consequential benefit to the appellants. The decision was made by Member (T) Chittaranjan Satapathy.

(Separate Judgment not delivered)