2005 (7) TMI 271

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..... he appeals are being disposed of by a common order as they are directed against the same impugned order vide which demand of duty of Rs. 4,68,608/- has been confirmed against M/s.Vinati Organics Ltd., alongwith imposition of personal penalty of identical amount. Personal penalties of varying amounts has been imposed on the other appellants under the provisions of Rule 209A of the Central Excise Ru .....

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..... tion is that the said mixture of gases is hazardous to health of human beings and animals and are not allowed to be escaped in the atmosphere and they have to be flared up. As such, the appellant has been burning out part of such effluent material by flaring up wherever possible, a part of such gas is also used for burning as fuel inputs in their boiler and some small excess quantity is supplied t .....

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..... n question was neither a petroleum gas or gaseous hydrocarbons nor was it liquified. As such, the same could not have been classified under Heading 2711.19. They have also contended that no consideration was received by them for supply of gases to their neighbouring unit and as such it can be safely concluded that the goods were not marketable and it was only with the sole purpose of destroying th .....

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..... CX. dated 1-10-96 has held that gases falling under Chapters 27, 28 and 29 of Central Excise Tariff allowed to escape in the atmosphere by flare system or otherwise could not be held as manufactured excisable goods. If that part of the gas, which is allowed to be flared up is not treated as excisable by the revenue, it is not understood as to how the same gas when supplied to the neighbouring unit .....

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..... oiler and it is only the surplus waste of gas, which is being supplied through a pipeline to a neighbouring unit for putting the same to some use, which fact by itself will not make the said mixture of waste gas as excisable. 6. In view of the foregoing, we set aside the impugned order and allow all the appeals with consequential relief to the appellants. (Operative part pronounced in Court)
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