1987 (8) TMI 334

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Excise Tariff and that the Commission should 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 w....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....3 - 0.01 0.02 Carbon dioxide 0.30 - -  2.30 Nitrogen          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"......

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....aspect is not seriously disputed by the appellants. What is disputed by the appellants is that in name, character or use Lean Gas is not different from natural or 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 ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ap is obtained in the course of manufacture and not out of manufacture of the end product. In our opinion, it is not as result of manufacture, because no one would produce any such deregarding or even inferior thing. If the raw material of rubber compound has undertone some change in the process of manufacture so as to turn into waste or scrap, it cannot be equated with any finished product. There is a change but every change in the raw material is not manufacture. There is no transformation in case of waste/scrap of a new and different article. No one has brought into existence a new substance having a distinctive name, character of use." In our view the decision does not help Shri Lakshmikumaran. Unlike the decision in the present case....