2013 (12) TMI 111

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....oject at Panipat Refinery, the Ministry of Environment has given permission under certain terms and conditions as is embodied in para 2 (vi) of the permission letter dated 5th March, 1997. So also by letter dated 2.11.1996 Pollution Control Board of Haryana, Chandigarh required the appellant to manufacture low sulphur diesel, so as to prevent effluent and air emission. According to condition No.10 of the permission letter the appellant Unit will enhance capacity of ETP, so that provision of 20% extra capacity is maintained all the time after adding effluent to be generated from D.H.D.S. Plant. So also there was a condition under clause 13 of the permission letter that the unit shall maintain the efficiency of sulphur recovery plant to the l....

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....SD), SKO, Naphtha, Furnace Oil, Liquefied Petroleum Gas (LPG), Aviation Turbine Fuel (ATF) etc. chargeable to Central Excise duty under Chapter 27 of the Central Excise Tariff. During the period of dispute i.e. during period from April 2000 to March 2003, the appellant were availing of Cenvat credit of excise duty paid on the inputs and capital goods in accordance with the provisions of Central Excise Rules, 1944/ Cenvat Credit Rules 2001/2002. The dispute in this case is about eligibility for Cenvat credit of the capital goods namely Sulphur Recovery Unit (SRU) and Standby Sulphur Recovery Unit (SSRU). The total capital goods Cenvat credit availed by the appellant in respect of these capital goods is Rs. 6,22,91,614/-. The department is of....

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....ty to repeat the same in this order. 9. I have considered the submissions from both the sides and perused the records. 10. The appellant among other products, manufactured diesel which in terms of ISI specifications could not contain sulphur above a limit specified in the ISI specifications. Since the Crude Oil used, sometimes, has high sulphur content, this results in the sulphur content of the HSD manufactured out of such crude oil having sulphur beyond the permissible limit. For removal of sulphur so as to bring the sulphur content within the acceptable limit, the HSD is processed in the Diesel Hydrogen Desulphurisation unit, where the HSD is reacted with hydrogen in presence of a catalyst, as a result of which the sulphur present ....