1987 (8) TMI 334

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....ould file classification and price list forthwith and comply with the central excise procedure. The Assistant Collector demanded duty amounting to Rs. 45,43,78,730.14 vide order dated 1.2.84 and for breach of certain rules mentioned in the order dated 28-8-84 he also imposed a penalty of Rs. 5,000/-. In appeal the Collector of Central Excise (Appeals) Bombay by separate orders dated 18.9.86 set aside the penalty but otherwise dismissed the appeal. Hence the present appeals to the Tribunal. 2. At the hearing of the appeals on 3.7.87 Shri V. Lakshmikumaran, Advocate represented the appellants and Shri Sundar Rajan, JDR the respondent. Shri Sundar Rajan conceded that according to Revenue if Lean Gas was held to be excisable goods ................

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....bsp;  0.42 - -  0.42 Moisture 0.42 - -  0.42 TOTAL 100.00     96.70  Relying on this composition he argued that all the elements that are present in natural gas or associated gas are also present in Lean Gas. He further submitted that what is supplied by the appellants to the customers M/s. RCFL and M/s. Tata Electric Co. is nothing else than natural gas from which L.P.G. has been extracted. According to him, no change had taken place so as to term the process as one of "manufacture". According to him requisite ingredients of "manufacture"............. had not been fulfilled in the case of Lean Gas which was in no way different from natural or associated gas and therefore there could be no questi....

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.... associated gas. Now as the name itself suggests, it is different. The composition data placed before us and referred to above would show that character of Lean Gas is different from that of natural gas. Shri Lakshmikumaran argued that both are used as fuels. Now as is well-known that in the area of mineral oils and gas one fuel is different from other. Merely because natural gas can be used as fuel for burning and so can the Lean Gas would not mean that the two are in use the same. If it were so petrol Kerosene and diesel would also be treated alike which is not the case. Besides this the agreements placed on record would show that Lean Gas besides fuel has other uses also which would not appear to be the case for natural gas. In view of t....