2013 (12) TMI 1506 - AT - Central Excise

Summary

Issues involved: Stay petitions for waiver of pre-deposit of Central Excise duty on Oxygen consumed in manufacturing final products claiming exemption under Notification No. 67/95-C.E.

Summary:
The judgment by CESTAT AHMEDABAD, delivered by Member (J), addressed three Stay Petitions seeking waiver of pre-deposit of Central Excise duty on Oxygen consumed in the manufacturing of final products. The duty was confirmed by the adjudicating authority and upheld by the first appellate authority, stating that the appellant is liable to pay duty on the Oxygen consumed. After hearing both sides and examining the records, it was observed that the appellant extracts Oxygen from ambient air for use in a continuous process without storing it for manufacturing paper pulp. The separation of Oxygen and Nitrogen is deemed a non-marketable product due to the continuous process without compression or storage of Oxygen. Consequently, the appellant established a prima facie case for waiver of pre-deposit, leading to the allowance of the applications and stay of recovery until the appeals are disposed of. The judgment was dictated and pronounced in Court by the Member (J).