1983 (9) TMI 314

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....such use will not earn the exemption under Notification No. 74/73 and Notification 352/77. By Notification 74/63 intermediate petroleum products produced in the refineries falling under Item 11A if used as fuel within the refineries for the production or manufacture of other finished petroleum products are exempt from the whole of the duty of excise leviable thereon. By Notification No. 352/77 petroleum products falling under Items 6 to 11AA produced in refineries wherein refining or crude petroleum or shell or blending of non-duty paid petroleum products is carried on and utilised as fuel within the same premises for the production or manufacture of finished petroleum products are exempt from the whole of the duty of excise leviable thereo....

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....ich would support an interpretation that holds that when steam and electricity is produced and used in this way, the fuel that was used to generate them cannot be said to have been used as a fuel in the manufacture of production of finished petroleum product. Neither electricity nor steam are themselves fuels but were produced by the fuel oils. The steam and electricity generated by means of the fuel oil are in turn used in the manufacture of the finished petroleum products. Indeed we are not a little impressed by the counsel for the appellants statement that direct use of the fuel oils as a fuel is all but impossible in a modern refinery. At the very least, the loss of heat and efficiency from such direct use is such as to discourage econo....