CESTAT Bangalore: Duty exemption for vented gases upheld, Revenue bound by Circular

JINDAL PRAXAIR OXYGEN CO. PVT. LTD. Versus COMMISSIONER OF C. EX., BELGAUM

JINDAL PRAXAIR OXYGEN CO. PVT. LTD. Versus COMMISSIONER OF C. EX., BELGAUM - 2007 (219) E.L.T. 722 (Tri. - Bang.) Issues involved: Appeal against demands confirmed by Commissioner of Central Excise for vented out gases, applicability of duty exemption as per Board Circular, consideration for gases vented out, interpretation of relevant legal provisions.

Summary:

Issue 1: Confirmation of demands for vented out gases
The appeal challenged the Order-in-Original confirming demands for gases vented out to prevent pipeline damage. Commissioner held duty exemption not applicable as gases were manufactured for sale. Production recorded before venting out, duty computed on vented gases. Appellants relied on Board Circular No. 246/80/96-CX, citing technical necessity for venting.

Issue 2: Applicability of duty exemption as per Board Circular
Appellant contended venting out gases was technical necessity, contrary to demands and penalty. Cited various judgments supporting remission of duty for loss or destruction of goods. Referred to Apex Court judgment emphasizing binding nature of Board Circular.

Issue 3: Consideration for gases vented out
Revenue argued gases vented out after recording production and receiving payment. Appellant disputed receiving consideration for vented gases, lack of evidence supporting Revenue's claim.

Issue 4: Interpretation of relevant legal provisions
Tribunal considered Board Circular No. 246/80/96-CX exempting gases vented out from duty. Noted admission of venting out gases without consideration received. Upheld appellant's reliance on Circular, citing Apex Court precedent. Held Revenue bound by Circular, allowed appeal with consequential relief.

This summary provides a detailed overview of the legal judgment, addressing each issue involved in the appeal before the Appellate Tribunal CESTAT, Bangalore.