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TMI Blog2001 (5) TMI 498X X X X Extracts X X X X X X X X Extracts X X X X ..... Shri B.B. Sarkar, JDR, for the Respondent. [Order per : Gowri Shankar, Member (T)]. The application No. 2116 is for waiver of deposit of duty of Rs 8.91 crores approx; (duty demanded in respect of the applicant s plant at Vaghodia near Vadodara); The application No. 2622 is for waiver of deposit of duty (demanded in respect of its plant at Usar) of Rs. 6.46 crores and a penalty of Rs 1.0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rule (1) of Rule 57CC. 4. The contentions of the counsel for the applicant are these. The product manufactured by the applicant is only LPG obtained by extracting butane and propane from the natural gas supplied. The lean gas is therefore not a result of manufacture. It is alternatively contended that the lean gas would be a by-product and the provisions of sub-rule (1) of Rule 57D will apply, e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s that reversal of the credit by itself does not nagate or nullify the fact of credit having been taken. Once the credit is taken, all relevant provisions of law including that of Rule 57CC come into play. He further contends that the essential character of the natural gas that the applicant received is changed by the manipulation to which it is subjected to by the applicant, and the lean gas that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able result. There is prima facie a case for holding it to be a by product. The sale price of the two products (Rs. 19.0 per cubic metre of LPG and lean gas is Rs. 3.2/- per cubic metre) support this view. We also find some substance in the other contention that the amount in question could not have been recovered under the provisions of Rule 57-I. The Circular No. B-42/1/96/TRU, dated 27-9-1996 o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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