2013 (11) TMI 1538

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....duty against the respondent along with imposition of penalty to the extent of Rs. 2,96,881/-. 2. We have heard Shri V.P. Batra, learned DR appearing for the Revenue and Shri B.L. Narasimhan, learned Advocate appearing for the respondents. 3. As per facts on record, the respondents are engaged in the manu­facture of terry towels and made-ups falling under Chapters 58 and 63 of the Central Excise Tariff Act, 1985. During the period relevant for the purpose of present appeal i.e. from 22-7-2002 to 8-4-2004, they procured HSD/ULSD without payment of Central Excise duty in terms of Rule 19(2) of Central Excise Rules, 2002 read with Notification No. 43/2001-C.E. (N.T.), dated 26-6-2001. The said duty free fuel was procured by the ....

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....oval of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001 mandate using the goods directly in the manufacture of excisable goods. He took into consideration the decision of Hon'ble Supreme Court in the case of Gujarat State Fertilizers Company Ltd. v. CCE [1997 (91) E.L.T. 3 (S.C.)] as also in the case of Indian Farmers Fertilizer Coop Ltd. v. CCE, Ahmedabad [1996 (86) E.L.T. 177 (S.C.)] and held that law declared by the Apex Court is fully applicable to the facts of the present case. The issue before the Hon'ble Supreme Court in the said decision was as to whether exemption would be available to the Naphtha which is used in the manufacture of Ammonia and such ammonia is further used in the manufacture of fe....

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....e subject matter of the dispute before the Hon'ble Punjab & Haryana High Court in the case of Commissioner of Central Excise, Chandigarh v. National Fertilizer Ltd. [2002 (140) E.L.T. 372 (P&H)] wherein it was held that furnace oil used in the manufacture of steam which in turn is used in generation of electricity would be entitled to concessional rate of duty inasmuch as the steam generation is part and parcel of the composite process. We may also take note of the Hon'ble Supreme Court decision in the case of Commercial Taxation Officer, Udaipur v. Rajasthan Techchem Ltd. [2007 (209) E.L.T. 165 (S.C.) = 2006 (12) S.T.R. 660 (S.C.)], Though the said decision relates to the provision of Rajasthan Sales Tax Act, 1984 but the same can be safel....