9911796707
TMI Blog1983 (9) TMI 314X X X X Extracts X X X X X X X X Extracts X X X X ..... fication No. 74/73 and Notification 352/77. By Notification 74/63 intermediate petroleum products produced in the refineries falling under Item 11A if used as fuel within the refineries for the production or manufacture of other finished petroleum products are exempt from the whole of the duty of excise leviable thereon. By Notification No. 352/77 petroleum products falling under Items 6 to 11AA produced in refineries wherein refining or crude petroleum or shell or blending of non-duty paid petroleum products is carried on and utilised as fuel within the same premises for the production or manufacture of finished petroleum products are exempt from the whole of the duty of excise leviable thereon. The dispute is a simple one and arose from t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... when steam and electricity is produced and used in this way, the fuel that was used to generate them cannot be said to have been used as a fuel in the manufacture of production of finished petroleum product. Neither electricity nor steam are themselves fuels but were produced by the fuel oils. The steam and electricity generated by means of the fuel oil are in turn used in the manufacture of the finished petroleum products. Indeed we are not a little impressed by the counsel for the appellants statement that direct use of the fuel oils as a fuel is all but impossible in a modern refinery. At the very least, the loss of heat and efficiency from such direct use is such as to discourage economic operation. 4. But our chief reason is that w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r exemption are only those used as fuel for the production or manufacture of other petroleum products . 11. The amending Notification No. 131/80, dated 23-8-1980, has little or no effect on the construction of the aforesaid Notification, for the only change made was to omit the word other so that it read manufacture of petroleum products instead of manufacture of other petroleum products . 12. Subsequent amendments, if any, are not relevant for the periods in question. 13. Petroleum products fall necessarily under Items 6 to 11 A of the First Schedule and it is such petroleum products that are to be manufactured with the aid, as fuel, of any of the petroleum products. 14. Now, in the case before us, it was not petroleum pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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