2017 (9) TMI 295

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....ETA without payment of duty availing the exemption contained in Sl. No. 29 of Notification No. 6/2002-CE dated 1.3.2002. Exemption to LSHS is available when it is used as fuel for generation of electricity by the electricity undertakings owned or controlled by the Central Government or any State Governments or local authority or State Electricity Board or a person licensed under Part II of the Indian Electrical Act, 1910 and engaged in the business of supply of electrical energy. The department was of the view that the appellant being a private limited company are not controlled or owned by the TNEB and is not eligible for the benefit of exemption. Secondly, that as lignite is primary fuel for generation of electricity and LSHS was not used....

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....otification was amended later whereby an Explanation was added. The appellant would thus fall within the Explanation which states that generating company means a generating company as defined under section 2(4A) of the Electricity (Supply) Act, 1948 and which has been granted consent/permission in writing under section 44 of the Electricity (Supply) Act, 1948. She referred to the very same judgment in the appellant s own case and submitted that the Tribunal in the said decision had also observed that for post-amendment, the appellant would be eligible for the benefit of the Notification. 3. Ld. AR Shri B. Balamurugan reiterated the findings in the impugned order. He submitted that the fuel so obtained availing exemption should be used as....

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....nly to primary fuels and not to secondary fuels. Negativing this argument, this Bench held as under:- It should be held that the LSHS used a secondary fuel in the start-up of boilers in the Thermal Power Station of M/s. NCL was intended for use as fuel for the generation of electricity. If this be so, the LSHS used as secondary fuel for flame stabilization i.e. for sustaining the process of combustion of lignite (primary fuel) must a fortiori be held to be intended for use as fuel for generation of electricity. Both start-up operation and flame stabilization are integral to the generation of electricity. In other words, the LSHS used as secondary fuel in start-up of boilers and in flame stabilization was eligible for procurement without ....