CESTAT Kolkata: Relief for PSU as Demand for Nil Rate Duty on Inputs Set Aside

The Appellate Tribunal CESTAT, Kolkata, set aside the impugned demand on the appellant Public Sector Unit for using inputs in the production of coke oven gas chargeable to nil rate of duty. The Tribunal found that the inputs were used for deriving by-products like benzene and toluene from the gas, not in the production of coke oven gas. Consequently, the demand for payment related to coke oven gas was deemed unjustified, providing relief to the appellants. The decision was rendered by Member (T) Chittaranjan Satapathy.

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Issues involved: Impugned demand on the appellant Public Sector Unit for using inputs in the production of coke oven gas chargeable to nil rate of duty.

Summary:
The Appellate Tribunal CESTAT, Kolkata, heard the appeal regarding the impugned demand on the appellant Public Sector Unit for using inputs in the production of coke oven gas chargeable to nil rate of duty. The appellant explained that the impugned inputs were not utilized in the production of coke oven gas but were used for deriving by-products like benzene and toluene from the gas. The Tribunal, after considering the technical process involved, concluded that the impugned inputs had no role in the production of coke oven gas but were used solely in the production of the by-products. Therefore, the impugned order demanding payment in relation to coke oven gas was set aside, granting consequential benefit to the appellants. The decision was made by Member (T) Chittaranjan Satapathy.

(Separate Judgment not delivered)

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