TaxTMI 
TaxTMI 
2012 (8) TMI 825
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..... Lakshmi A.N. Rao, Advocate JUDGEMENT Per: P.G. Chacko; All these appeals are by the Department aggrieved by orders of the Commissioner(Appeals) holding in favour of the assessee on the question whether duty of excise was leviable on Oxygen, Nitrogen and Argon gases vented out to the atmosphere during the periods of disputes. 2. The respondent is engaged in the manufacture of Oxygen, Nitrogen....
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....ondent during the periods of dispute were exigible to duty of excise. On a perusal of the records, we find that the respondent was constrained, by the technology adopted by them for continuous manufacture of the gases, to allow some volume of the three gases to escape into the air to prevent damage of the pipeline due to accumulation of high pressure that might arise in the event of the consumers ....
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.... to refer to erstwhile Notification No. 75/94-C.E., dated 1-3-1994. Gases falling under Chapter 27, 28 or 29 produced in a factory and allowed to escape in the atmosphere by flare system or otherwise were exempt from excise duty vide S. No. 14 of the notification. The exemption was reviewed during the budget and it was felt that gases escaping in the atmosphere by flare system or otherwise may not....
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....ce to gases falling under Chapter 28 or 29. In this context, a question has been raised whether on similar basis gases falling under Chapter 28 and 29 produced in a factory and allowed to escape in the atmosphere are also not to be regarded as manufacture. The answer to this lies in the affirmative. Accordingly, it is clarified that gases falling under Chapter 28 and 29 produced in a factory and a....