1984 (7) TMI 368 - AT - Central Excise

Summary

Issues:
1. Interpretation of Notification 105/78 regarding concessional rate of duty on electricity generated by a generating station.
2. Eligibility of the appellants for exemption under Notification 105/78.
3. Consideration of Notification 52/78 for exemption on electricity consumed in an industrial unit.
4. Relevance of the definition of "generating station" in the Electricity Act.
5. Possibility of availing multiple benefits under different notifications.
6. Application of the Explanatory Memorandum in determining the government's intention.
7. Justification for the appellants' entitlement to benefits under both Notification 52/78 and 105/78.

Analysis:

1. The appeals revolve around the interpretation of Notification 105/78, which provides for a concessional rate of duty on electricity generated by a generating station. The issue at hand is whether the appellants qualify for this concession based on their status as a generating station supplying power to coal mines.

2. The contention arises from a show cause notice challenging the appellants' eligibility for the exemption under Notification 105/78. The Assistant Collector and the Appellate Collector ruled against the appellants, leading to the appeals before the Tribunal.

3. The appellants argue that they are entitled to the benefits of Notification 105/78 based on a prior decision by the Tribunal in similar matters. They also seek exemption under Notification 52/78 for electricity consumed in their industrial unit.

4. The Tribunal examines the definition of "generating station" under the Electricity Act to ascertain the appellants' status. It is determined that the appellants, as an industrial unit generating power for internal use, can be considered a generating station for the purpose of the notifications.

5. The Tribunal addresses the possibility of availing multiple benefits under different notifications. It is established that while Notification 52/78 covers captive consumption in an industrial unit, Notification 105/78 provides a concessional rate of duty for electricity generated by all units, including generating stations.

6. The Tribunal considers the government's intention, as reflected in the Explanatory Memorandum, in interpreting the scope of the notifications. It concludes that there is no explicit restriction preventing the appellants from benefiting from both Notification 52/78 and 105/78.

7. Ultimately, the Tribunal agrees with the appellants' argument that they are entitled to the benefits under both notifications. The appellants' historical concession, coupled with the specific use of power within the mines and the absence of prohibitive clauses, supports their claim for exemption under Notification 105/78 and Notification 52/78. As a result, the appeals are allowed in favor of the appellants.