TaxTMI 
TaxTMI 
2006 (11) TMI 452
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....f captive consumption of diesel steam arising from the processes of sour crude. The sour crude underwent the process of refining and as a result diesel steam emerged, which was captively consumed on payment of duty in the generation of electricity in the captive power plant available in the refinery, which was also cleared on payment of duty outside the refinery to the market. 2. During the year 1996, the Ministry of Environment of Forest issued a Notification specifying the maximum sulphur content as 0.50% by mass to control environmental pollution caused by emission due to burning of fuels. The Ministry of Petroleum and Natural Gas vide their letter dated 27-4-1998 directed oil companies to adhere to the new guidelines specified i....
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....ich had higher suplhur content of more than 0.25%. Their contention is that the demands cannot be raised on these products, as it does not meet the specifications laid down by the Ministries and the BIS. They have also relied following ruling which according to them has settled the issue in their favour. (a) UOI v. Delhi Cloth & General Mills Ltd. -1997 (92) E.L.T. 315 (S.C.) (b) Himalaya Drug Company v. CCE - 2005 (187) E.L.T. 427 (c) Cipla Ltd. v. CCE - 2004 (64) RLT 823 3. The learned Counsel relied on the judgment rendered in MRPL by this Bench in the case of Final Order No. 746-747/2006 dated 5-4-2006 = 2006 (203) E.L.T. 591 (Tribunal) wherein similar demands raised in respect of LSHS captively used in p....
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....tted that the demands pertain to 3-5-2001 to 31-12-2002 and the show cause notice was issued on 29-6-2004 and therefore, demands prior to 1-6-2003, is also barred by time. 4. The learned JDR reiterated the Departmental contentions. 5. On a careful consideration, we notice that the appellants were clearing the diesel steam emerging in the course of refining of sour crude on payment of duty and also was captively consumed on payment of duty. However, the situation changed in 1996 when the Ministry of Environment of Forest issued a Notification specifying the maximum sulphur content as 0.50% by mass to control environmental pollution caused by emission due to burning of fuels. The Ministry of Petroleum and Natural Gas accepted ....