1988 (5) TMI 166

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...., for the Respondent. [Order per : S.D. Jha, Vice-President (J)].  - The issue arising for decision in this appeal is liability of the appellant to duty in respect of Carbon Electrode Paste produced during the period 1-3-1975 to 29-4-1975 and their eligibility to benefit of exemption under Notification No. 118/75, dated 30-4-1975 based on captive consumption. 2. The Assistant Collect....

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....at M.P. Electricity Board started supplying 55 Mw. of power in May, 1975 and the Smelter Plant went on stream in May, 1975. Annexure A is M.P. Electricity Board letter dated 25-4-1975 addressed to General Manager of the appellant from which it appears that the appellant had intimated the M.P. Electricity Board that they would be drawing 55 Mw. of power only from 5-5-1975 onwards. There is some ref....

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....hey were captively consumed only after Smelter plant started working in May, 1975 when Notification No. 118/75, dated 30-4-1975 granting exemption in respect of captive consumption had come into force. It is also urged that in absence of the Smelter plant, it would not have been possible to consume this paste. 4. We have gone through the order-in-original and the order-in-appeal. From a reading....

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....m the factory or captively consumed between this period, there could be no occasion for the appellant paying duty or demand being raised against them on that account. If however, they were consumed after Notification No. 118/75 had come into force, then captive consumption would be deemed removal immediately preceding consumption within the meaning of Rules 9 and 49. But in such an event the appel....