9911796707
TMI Blog2007 (8) TMI 191X X X X Extracts X X X X X X X X Extracts X X X X ..... rest under Section 11AB of Central Excise Act. 2. The appellants are manufacturers of petroleum products falling under Chapter 27, 28 and 29 specified in the Schedule to Central Excise Tariff Act, 1985. Naphtha is one of the products manufactured in their premises. They are utilizing Naphtha falling under Chapter sub-heading No. 2710.14 as fuel in cogeneration power plant (CPP) and Hydrogen unit of Diesel Hydro Desulphurisation Plant by availing benefit of the Notification No. 67/95-CE., dated 16-3-1995. The department found that the appellant had supplied a small minuscule I portion of electricity so produced to M/s. APTRANSCO, in addition to its use in the refinery. Therefore, show cause notices were issued for the recovery of duty on th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stage inherent in the activity of power generation. Since the waste cannot be let into the atmosphere, the same is allowed to flow into the grid and therefore, there was no removal for the purpose of levy of duty in tents of Section 3 of the Central Excise Act. It was also contended that no payment is envisaged in the power flowing into the grid beyond their control and there was no sale to APSEB and hence, no liability arises. 3. The Commissioner has not referred to any of these issues placed by him although he has noted their submissions in the impugned order. He has only mentioned that the Notification has been violated in removal of the electricity outside the factory premises to M/s APTRANSCO and hence, duty is required to be confirme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n is received and hence, no duty is required to be paid. He also submits that demands are barred by time. 5. The learned JDR reiterates the department's view. 6. We have carefully considered the submissions and have perused the grounds of appeal as well as the submissions made. As can be seen from the assertion of the assessee 99.9% of the electricity so generated is utilized in their refinery operations. The minuscule portion of the electricity gets automatically uploaded to the grid of the APSEB as a technological necessity, depending upon the load generated and grid conditions. This uploading happens without the appellant's intervention. The electricity generated gets automatically uploaded into the grid due to the difference in the lo ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
