2011 (8) TMI 1001 - HC - Central Excise

Summary

Issues:
1. Appeal by Revenue against CESTAT order exempting excise duty on gases vented into the atmosphere.
2. Interpretation of Board Circular dated 1-10-1996 regarding duty-free clearances.
3. Jurisdiction of the High Court in appeals regarding excisability of gases vented into the air.

Analysis:
1. The appeal was filed by the Revenue challenging the CESTAT order exempting excise duty on gases vented into the atmosphere based on a Board Circular. The show-cause notice acknowledged the venting out of gases and the exemption as per the Circular. The issue raised was whether such vented gases are exempt from excise duty. The learned counsel for both parties highlighted similar substantial questions of law in another matter.

2. The interpretation of the Board Circular dated 1-10-1996 was crucial in determining the duty-free clearances for gases vented out into the air. The question revolved around whether the exemption extended by the Circular applied to gases vented in a manner other than through a flare system or regularly. The decision in CEA No. 151/2007 was cited, where it was held that the appeal on the escisability of gases vented into the air and sold to related entities lies with the Supreme Court under Section 35-L of the Central Excise Act.

3. Considering the precedent set in previous judgments, the High Court held that the appeal was not maintainable in their jurisdiction and should be filed under Section 35-L of the Central Excise Act. The Court emphasized that the questions raised regarding excisability of vented gases and the availability of exemptions under the Circular fell under the exclusive jurisdiction of the Supreme Court, as expressly barred under Section 35-G of the Central Excise Act. The appeal was disposed of with liberty given to the Revenue to approach the Supreme Court for further proceedings.