9911796707
TMI Blog1990 (8) TMI 249X X X X Extracts X X X X X X X X Extracts X X X X ..... y set up three capital power houses inside their Works area primarily and essentially to meet the requirements of the Works. The generation of electricity from their own Power Houses not being sufficient to meet the capital and public demand, a considerable quantity of electricity is purchased by the appellants from Damodar Valley Corporation (DVC in short). 2. In 1978 electricity became liable to Central Excise Duty, being classified as Tariff Item 11(E). In the same year, the Central Government exempted from duty electricity on the condition that the same is generated in an industrial unit and is consumed there. (Notification No. 52/78-CE). 3. The Central Excise Deptt. took into consideration the factual position that the electricity ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the formula laid down by the Collector of Central Excise, the High Court in paragraph 16 ordered as follows : Having examined the question very dosely and having considered the matter in all its ramifications, I direct that the Respondents should deduct the quantity of energy supplied to the various associated companies from the total supply of energy received from the DVC before it gets mixed up with the electricity generated in the petitioner s power houses and thereafter, it would be appropriate if the petitioner paid the duty on the electricity supplied by them for other than industrial uses in proportion to the electricity generated by themselves and that obtained from DVC in a particular month. In my opinion, it would be proper th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has to go back to them and it is accordingly remanded for a fresh calculation in accordance with above directions. There will be no order as to costs. 6. In the light of the remand order, the Collector took up the matter for fresh adjudication. By that time, the appellants appeared to have come across two orders (in appeal) passed by the Central Board of Excise Customs in the cases of M/s. F.C.I. and Indian Iron Steel Co. Ltd. At least in one of these orders the Board decided that the electricity generated by the appellants thermal unit shall be liable to duty if and only when their internal consumption on any date, in the industrial unit, is reduced to less than the quantum generated by their Unit. 7. These orders were cited by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the direction to calculate the monthwise liability, mixed up the entire supply from DVC with the appellants own production and then apportioned it between captive (Industrial) and non-industrial consumption. 9. We made attempts to ascertain if the Central Board of Excise Customs would agree to adopt the method of calculation recorded by the Member CBEC in his order in Indian Iron Steel Co. Ltd. (Order No. 182 dated 18-6-1982 passed by the Central Board of Excise Customs). However, in spite of repeated adjournments nothing was stated before us. The ld. Representative of the Deptt. supported the Collector s order. 10. We have considered the rival submissions. In the given set of facts, three views can be taken. The first view is t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e High Court passes an order. That the appellants were not aware of the Board s order when they went before the High Court, cannot be a ground to agitate before us seeking that the High Court s order should be ignored. We cannot, for a moment, over-look the fact that the Union of India were the Respondents before the High Court and the order was passed after hearing both sides and remained un-challenged. Therefore, we are bound by the High Court s order. 12. The appellants have two grievances against the Deptt. even in the light of the High Court s order. One is that the total supply from DVC was taken into consideration and the second one is that the Collector did not calculate the liability on the basis of monthwise figures. It was not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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