9911796707
TMI Blog1997 (10) TMI 181X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellants had installed a Lancashire Boiler in their factory. A question has arisen whether steam so produced was liable to duty. It was their contention that their boiler operated without the aid of power in any form; hence, it was exempt. 3. The appellants had vacant sheds which had been given to M/s. Nahar Spinning Mills Limited, Ludhiana who carried out the process of washing of garments etc. For such washing, they needed steam. 4. During December, 1985 to June, 1986, the appellants allowed M/s. Nahar Spinning Mills Limited to use steam produced out of the appellants boiler and charged to them a sum of Rs. 13,21,925/- being the sum total of cost of coal used in boiler and other relevant charges for the operation of the boiler, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal set aside the order and remanded the matter to the Additional Collector for de novo adjudication after giving appellants due opportunity of being heard. 10. It was his submission that at no time, the appellants were confronted with the letter bearing C. No. V(Ch. 28)/21/253/87/228, dated 9-1-1991 referred to by the Additional Collector. He has thus negated the assessee s claim and has again confirmed the demand of Rs. 67,202.70 under Section 11A of the CESA, 1944. 11. It was his submission that the impugned order has been passed against the principles of natural justice. According to learned Additional Collector, the A.C. has reported that ID Fan fitted with the boiler is operated with power and without this boiler cannot work ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is usually 30/35 meters higher than the burning chamber of the boiler. When fuel in the burning chamber burns, the hot gases rapidly rise upwards towards the exit of the chimney making room for fresh oxygen carrying air to flow inward the burning chamber through air holes/ducts, thus providing necessary oxygen to the fuel to burn. In this process, power is neither required nor therefore, is used. 14. It was his submission that water in the boiler is fed with the help of an injector valve. This injector valve uses steam jet to push water in the boiler. As defined and not controverted by learned Additional Collector, steam energy does not become power as there is no mechanical push or pull action undertaken by the steam. The incoming force ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ece of a document purported to an enquiry report after the hearing had been concluded without giving an opportunity to the appellants to controvert the same. Therefore, the impugned order is also in violation of principles of natural justice. The case having already been remanded once by the Tribunal on the grounds of violation of principles of natural justice, the departmental authorities should have been doubly careful and ensured that this time, the due process of law was followed. 19. A question has arisen as to whether the word `power used in the notification refers to electric power or covers steam power also. Learned representative of the appellants had thereupon referred to a series of notifications including 28/64, 51/67, 274/76 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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