Oil cess cannot be levied on condensate from natural gas processing absent express statutory inclusion.

Oil cess under section 15(1) of the Oil Industry (Development) Act, 1974 applies only to crude oil and natural gas, not to condensate produced during natural gas processing. The Tribunal treated condensate as a separate hydrocarbon product under rule 3(ac) of the Petroleum and Natural Gas Rules, 1954, and noted that its inclusion in the charging provision would require express statutory language. Relying on its earlier unshaken decisions in the same assessee's cases, it found no basis to depart from that view and held the demand unsustainable.

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Issues: Whether condensate emerging during processing of natural gas is liable to oil cess under section 15(1) of the Oil Industry (Development) Act, 1974.

Analysis: The Tribunal followed its earlier decisions in the respondent's own cases and held that section 15 of the Oil Industry (Development) Act, 1974 levies oil cess only on crude oil or natural gas. Condensate, as defined in rule 3(ac) of the Petroleum and Natural Gas Rules, 1954, is a separate hydrocarbon product obtained from natural gas processing and is not crude oil. The Tribunal also noted that if the legislature intended to tax condensate, it would have expressly included it in the charging provision. Since the demand had already been disallowed in earlier unshaken decisions, no reason was found to depart from that view.

Conclusion: Condensate is not liable to oil cess under section 15(1) of the Oil Industry (Development) Act, 1974. The Department's appeal was without merit and failed.

Final Conclusion: The demand of oil cess on condensate was not sustainable, and the appeal was dismissed.

Ratio Decidendi: Oil cess under section 15(1) of the Oil Industry (Development) Act, 1974 is leviable only on the goods expressly covered by the charging provision, and condensate emerging from natural gas processing does not fall within that levy absent specific statutory inclusion.

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