2004 (12) TMI 588

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....ice dated 16-6-2003. The demand of duty for the period June, 2002 to February, 2003, is on Low Sulphur Heavy Stock (LSHS) procured by the party for the purpose of use as secondary fuel for generation of electricity. The electricity so generated was supplied to TNEB. The assessee did not pay duty of excise on LSHS, claiming the benefit of Notification No. 6/2002-C.E., dated 1-3-2002. The procurement of LSHS was on the strength of 'Annexure-I certificate' issued by the jurisdictional Assistant Commissioner of Central Excise under the Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001. The department issued the above show-cause notice proposing to deny the benefit of Notification No. 6....

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....le, as a fuel used for generation of electricity, for the benefit of the exemption Notification. It is further submitted by ld. Counsel that the company was effectively controlled by TNEB as certified by the latter in their letter dated 2-5-2002 addressed to the Superintendent of Central Excise, Vridhacham. Thus, it is argued, the next condition for exemption was also satisfied by them. Ld. Counsel has made certain other submissions also. It is submitted that the show-cause notice in question should not have been taken up for adjudication by the Commissioner in view of the Ministry's letter dated 14-10-2004 addressed to Chief Commissioners and Commissioners of Central Excise, instructing that all show-cause notices proposing denial of exemp....

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....sion used at Sl. No. 29 in the Table annexed to the Notification : "Low Sulphur Heavy Stock ............intended for use as fuel for the generation of electrical energy by electricity undertakings owned by or controlled by the Central Government or any State Government or any State Electricity Board or any local authority.............". The Counsel has contended that the Company was controlled by the Electricity Board, in support of which he has relied on a letter written by TNEB to the Central Excise Range Superintendent, which reads as under : - "As per the terms of Power Purchase Agreement (PPA), M/s. ST-CMS Electricity Company Private Limited is coming under the effective control of TNEB. The said company will be generating and suppl....