9911796707
TMI Blog2007 (3) TMI 576X X X X Extracts X X X X X X X X Extracts X X X X ..... The appellants are manufactures of excisable goods viz., Oxygen, Nitrogen and Argon falling under respective Chapter Heading. The allegation against the appellants is that the entire quantity of the said gases manufactured by them is being cleared through a pipeline to M/s JVSL. The Department found that the quantity of the gases supplied was vented out in the air and not sold to buyers. They computed the duty on vented out gases and shown in E.R. 1 Returns. The Revenue has proceeded to recover this amount. The appellants have relied on the Board Circular No. 246/80/96-CX, dated 1-10-96. However, the Commissioner has held that the same is not applicable to the facts of the case. The reason given by the Commissioner is that in the present ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4) E.L.T. (J581)] (iii) J.K. Spinning and Weaving Mills Ltd. Anr. v. U.O.I. Ors. [1987 (32) E.L.T. 234] (iv) Singareni Collieries Co. Ltd. v. CCE [1988 (37) E.L.T. 361] (v) South India Carbonic Gas Industries v. CCE., Mumbai [1994 (72) E.L.T. 168] (vi) Padmini Products v. CCE [1989 (43) E.L. T. 195] (vii) Rainbow Industries (P) Ltd. v. CCE., Vadodara [1994 (74) E.L.T. 3 (S.C)] (viii) O.N.G.C v. CCE., Vadodara [1995 (79) E.L.T. 117] (ix) Tamil Nadu Housing Board v. CCE., Madras [1994 (74) E.L.T. 9 (S.C.)] (x) I.T.C. Ltd. v. C.C.E., New Delhi [1994 (72) E.L.T. 315] The learned Counsel submits that in all these citations it has been clearly held that where there is loss or destruction of goods then there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tory and allowed to escape in the atmosphere by flare system or otherwise were exempt from excise duty vide S. No. 14 of the notification. The exemption was reviewed during the budget and it was felt that gases escaping in the atmosphere by flare system or otherwise may not be considered as manufactured products and amounting to clearance and as such there may not be any need for prescribing separate exemption from the duty and hence the reference to the above mentioned exemption was deleted. Accordingly, it has been clarified in para 11.8 of Budget Instructions sent along with Commissioner (TR) s D.O. letter No. 334/14/95, dated 23rd July, 1996 that gases falling under Chapter 27 produced in a factory and allowed to escape in the atmosph ..... X X X X Extracts X X X X X X X X Extracts X X X X
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