TaxTMI 
TaxTMI 
2023 (6) TMI 1192
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.... 11A along with interest and penalty. 2. Briefly stated the facts of the case are that the Appellant is engaged in the manufacture of dutiable final products falling under Chapter 27 and Chapter 39 of the Central Excise Tariff Act at its petrochemical complex at Haldia, with Naphtha being its principal inputs. In order to meet the electricity and steam requirements of the Petrochemical Complex, the Appellant has set up a 116 MW Co-generation Power Plant as a Joint Venture titled, HPL Co-generation Limited ('HPLCL'), within the factory complex. During November 2000 to January 2004, the Appellant had removed Residual Fuel Gas ('RFG') generated out of cracking Naphtha to M/s. HPLCL for generation of electricity and steam following the procedu....
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....017 (348) ELT 713. (b) Notification No. 214/86 confers exemption to dutiable goods manufactured by job worker and since electricity and steam generated by the job worker were generally exempted, no benefit was claimed under Notification No. 214/86. (c) Even otherwise, 'RFG' could not be construed as excisable since the same was not capable of being taken to the market and also disputed its classification under Tariff Heading 2711.90 being a non-existent tariff entry thereby revenue failing to discharge the burden of proving marketability and dutiability. Reliance in this regard was placed upon the following decisions: (i) Collector of Central Excise, Baroda Vs. United Phosphorus Ltd. [2000 (117) ELT 529] (ii) Board of Trustees V....
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....ty which were received back by the Appellant and used in the manufacture of final products. Relevant para's of the said decision are set out below: "19. The Commissioner has denied the benefit of Rule 4(5)(a) of the Cenvat Credit Rules on the ground that "the said rule emphasises return of the inputs or partially processed inputs from the job worker premises after further processing such as testing, repairing, re-conditioning or any other purposes and not for complete conversion of input or partially processed input into a different entity altogether. When partially processed inputs get converted into an energy in the form of electricity, the original character of the goods known as CLS consisting of different constituents such as NRS/Py,....
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....hat the issue involved in the present case is on the same lines and the only difference is that in the said case the partially processed goods was 'CLS' whereas in the instant case we are concerned with 'RFG' but both 'RFG' and 'CLS' were generated on cracking of Naphtha and were sent to M/s. HPLCL for generation of electricity and steam with an intention to bring back electricity and steam for use in the manufacture of final products.The Ld. Commissioner misdirected himself in observing that this Tribunal's Order dated 28 January 2005 was not concerning dutiability of an intermediate good as Excise Appeal No. E/4001/04-A therein was concerning dutiability of an intermediate product (CLS). To the same effect is the decision of the Tribunal ....