2017 (5) TMI 1380

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....ine to M/s. Jindal Vijayanagar Steel Ltd. The recipient was consuming the gases for maintenance of plant and equipment. Due to technical reasons, some quantities of such gases sent through pipeline to the recipient was vented out into atmosphere. The Department wanted to levy duty of excise on such quantities of gases. Show-cause notice was issued and Central Excise duty amounting to Rs. 63,80,700/- was demanded from the respondents. Vide the impugned order, it was held that such duty demands are not sustainable and were set aside. Hence this appeal by Department. 2. With the above background, we heard Shri J. Harish for the Department. However, none appeared for the respondent. 3. During the course of arguments, it is brought to our ....

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....rder that the appellants have relied on the Board s Circular No. 246/80/96-CX, dated 1-10-1996 which is reproduced herein below :- "I am directed 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 be considered as manufactured products and amounting to clearance and as such there may not be any need for prescribing separate exemption from the duty and hence the reference to the above menti....