1982 (9) TMI 231

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....r, C.B.E. & C.]. - This is an appeal from M/s. Fertilizer Corporation of India against the orders of the Collector of Central Excise, Patna demanding duty of Rs. 4,81,000/- under Rule 9(2) of the Central Excise Rules, and imposing a penalty of Rs. 25,000/- on the appellants. The Collector has observed that as the electricity used for filtering water in the Settling Tank Pump House has not been cha....

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....strial unit and the electricity in question is used for purposes of that Pump House. Even though a part of the water filtered in the Pump House is supplied to other than the industrial units, as the Pump House itself is part of the industrial unit and the electricity is consumed in that pump house,the requirement of Notification' No. 52/78 is fully satisfied. It has also been contended that there ....

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....er is diverted for consumption in the township, the electricity used in proportion could not be accepted to be for use in the industrial unit and accordingly, he has held that the exemption given in Notification No. 52/78 was not admissible. He has accordingly raised a demand for duty. He has overlooked the fact that exemption Notification No. 52/78 only stipulates that the electricity generated i....

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..... The Board finds that Notification No. 52/78 stipulates that the electricity produced internally by an industrial unit and used for such industrial unit is exempt from the whole of the excise duty, subject to the satisfaction of the Assistant Collector of Central Excise about the actual use. The question for consideration, therefore, is whether the electricity in question has been used in the ind....