2000 (5) TMI 651

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....Shri H.K. Jain, SDR, for the Respondent. [Order per : V.K. Agrawal, Member (T)]. - In this appeal filed by M/s. Gas Authority of India Ltd. the issue involved is whether the Nitrogen gas used within the factory for purging of tankers belonging to other parties amounts to consumption within the factory so as to be eligible for exemption under Notification No. 40/85-C.E., dated 17-3-1985. 2....

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.... No. 37/98 dated 6-3-98 on the ground that the nitrogen gas produced by them was used in the purging of tankers belonging to different parties brought into factory for transporting the LPG; that as the appellants were charging from these parties for purging their tankers the duty is chargeable on nitrogen gas manufactured and used by them in such manner; that on appeal Commissioner (Appeals) under....

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....lue is realised by the manufacturer. He further mentioned that the condition specified in the Notification is only that nitrogen is consumed within the factory of production; that the condition does not specify that it should be consumed within the factory of production in the manufacture of any product. In this connection he referred to Sl. No. 12 & 13 of the Notification No. 40/85 where the exem....

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....all be purged by an inert gas or by the gas for which the vessel is to be used. The learned counsel said that it is obligatory on their part to purge the tankers before filling the same in view of Rule 7 mentioned above; that as the tanker is filled in the factory premises of the appellants and is purged by nitrogen, it is consumed within the factory. 4. Shri H.K. Jain, learned SDR, counte....