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TMI Blog2016 (2) TMI 759X X X X Extracts X X X X X X X X Extracts X X X X ..... liability. Clearance to FSNL through pipeline is an admitted fact. FSNL is a separate corporate entity having assigned factory premises of their own is also admitted. Sale for a consideration or ownership of goods are not relevant to decide excise duty liability. The contractual arrangements to meet business needs do not take away the duty liability which may otherwise exist. FSNL have established a factory at a site provided by the appellant inside their factory premises as per contract agreement. The oxygen is cleared to FSNL and consumed by FSNL. The exemption contemplated under notification No.67/95 is available if inputs (here ‘oxygen’) manufactured in a factory is used within the factory of production. Oxygen produced by appellant is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... riod. Aggrieved by this, the appellant filed this appeal. 2. Ld. Counsel for the appellant submitted that :- a) Clearance of oxygen through pipe-lines to FSNL will not amount to removal outside the factory. Benefit of notification No.67/95-CE is correctly claimed. b) There is no physical removal of exygen outside the factory of the appellant. The oxygen supplied through pipeline to FSNL is used within the factory only. Such clearance will not be a removal in terms of Rules 4 and 8 of Central Excise Rules, 2002. c) Notification No.67/95-CE is correctly availed by the appellants. The activities of FSNL are inside the approved premises of appellant only. The oxygen is not cleared outside such premises. d) Various case law ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpugned goods (oxygen) is cleared through pipeline to FSNL premises for further use. FSNL are using the said oxygen in the scrap recovery operation and are not registered with central excise department for any payment of duty on any final products. We find that the original authority fell in error in examining the issue like ownership of goods, free of cost supply and return of recovered scrap etc. to arrive at the finding that there is no physical clearance or sale of goods and hence no duty liability. Clearance to FSNL through pipeline is an admitted fact. FSNL is a separate corporate entity having assigned factory premises of their own is also admitted. Sale for a consideration or ownership of goods are not relevant to decide excise duty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inputs which are used in the manufacture of dutiable goods in his factory, which includes more than one premises. In Century Rayon - 2014 (299) E.L.T. 229 (Tri.-Mum.) the Tribunal was dealing with credit on fuel used in generation of power supplied to chemical plant within the same factory of the assessee. In the case of BHEL (Final Order No. A/52624/2015 - EX (DB) the Tribunal was deciding the issue of eligibility of capital goods for exemption under notification NO. 67/95 used by assessee themselves in another unit. Thus, decisions in any of these cases will not support appellant s plea. 6. In view of the above discussion, we find no merit in the present appeal. Accordingly, the same is dismissed. (Operative portion pronounced in th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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