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TMI Blog2011 (12) TMI 137X X X X Extracts X X X X X X X X Extracts X X X X ..... to as DPL) is engaged in the manufacture of turpentine oil and rosin. DPL claimed nil rate of duty in respect of the goods manufactured on the ground that the same are manufactured without the aid of power. Four show cause notices were issued to DPL demanding duty, interest and for imposition of penalty. The details of the show cause notices are as under:- S.No SCN No. & date Period Duty Amount Rs. Demand U/s/ Penalty U/s. U/r Interest U/s. 1 DGCEI/MZU/204/12(4)20/2003/Pt.III dated 04.10.2004 1999-2000 To 31.08.2003 10,91,99,456.00 Proviso to sub-section (1) of section 11A of the CEA-44 11AC of the CEA-44 penalty U/r 25 and personal U/r 26 of CER2002 11AB of the CEA - 44 2. V/(11A)ADJ/4-73/04 dated 09.10.2004 September 2003 50,760.00 -d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the Hon'ble Supreme Court vide CCE, Nagpur vs. Gurukripa Resins Pvt. Ltd. reported in 2011 (270) ELT 3 (SC), set aside the order passed by the Tribunal. 6. The contention of the Revenue in the present case also is that water is lifted to water tank with the aid of power and this fact is admitted by DPL. The Revenue also relied upon the statements of two other persons to show that there are other electric motors also used for manufacture. However, DPL has disputed this fact. 7. The contention of the Revenue is that in view of the decision of the Hon'ble Supreme Court in the case of Gurukripa Resins Pvt. Ltd., it cannot be said that DPL is manufacturing the goods without the aid of power. 8. The contention of the assessee is that the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. 9. We find that the assessee is engaged in the manufacture of turpentine oil and rosin. During the period in dispute, these products are classifiable under Heading 38.05 and 38.06 of Central Excise Tariff. For ready reference, the same are reproduced below:- "38.05 Gum, wood or sulphate turpentine and other terpenic oils produced by the distillations or other treatment of coniferous woods, crude dipentene, sulphate turpentine and other crude paracymene; pine oil; containing alphaterpineol as the main constituent Turpentine oil; 3805.11 In or in relation to the manufacture of which any process is ordinarily carried on with the aid of power 16% 3805.19- other - NIL 38.06 Rosin and resin acids. And derivative thereof, rosin and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e manufacture of 'Turpentine Oil' and 'Rosin' that but for the said activity the processing of Oleo-pine Rosin for manufacture of Turpentine Oil and Rosin would not be possible. It is common ground that without sprinkling of water on the coils carrying the vapours of Turpentine Oil, condensation-a crucial component of distillation which brings about the change of the physical state of matter from gaseous phase into liquid phase, is not possible. In other words without the process of condensation, Turpentine Oil, the final product, cannot be obtained. Similarly, without lifting water from the storage tanks at the ground level with the aid of electric motor to a higher level, the water cannot fall on the cooling coils with its gravitati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... endent of Central Excise wrote to the Assistant Commissioner of Central Excise vide letter dated 19.9.2003 whereby the Superintendent after taking into consideration the flowchart supplied by DPL specifically pointed out that in the process of manufacture, water is stored in the water storage tank with the aid of power using electric motor. This fact was also taken note in the letter dated 17.2.2004 by the Commissioner of Central Excise to the Additional Director General of Central Excise Intelligence, where it has been mentioned that DPL is manufacturing turpentine oil and rosin and is not paying central excise duty on the ground that the goods are manufactured without the aid of power. The unit was visited by the officers of the Revenue a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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