1980 (4) TMI 117

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....- The Associated Cement Companies Limited, the petitioner before us, has been manufacturing cement at Sevaliaya in Kheda District. It has been running its power house in which it has been generating electric power for captive use only. It is used by them alone exclusively for the purpose of manufacturing cement. The Electric Power House is run with the help of boiler steam. The boiler has been ins....

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....doing since 1st March, 1975 without obtaining a licence in that behalf as contemplated by section 6 of the Central Excises and Salt Act, 1944 and Rule 174 of the Central Excise Rules. 1944. 3. On 26th August, 1976, the petitioner replied to the show cause notice and denied its liability to pay excise duty. On 8th September, 1976, respondent No. 3 made an order in which he took the view that ste....

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....power house exclusively for captive use. So far as the period between 1st March, 1975 and 30th April, 1975 is concerned Mr. Nanavaty who appears on behalf of the petitioner has shown us another notification which was in force then. Under that notification, the Central Government had exempted goods specified in the schedule annexed thereto and falling under Item 68 of the First Schedule to the Cent....

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....however, show that steam was not produced as an independent commodity indeed exclusively for captive use. In the instant case, the petitioner had been producing steam in order to produce electric light and power. Loosely, therefore, it can be described as an intermediate or component pert of electric light and power. However, we are of the opinion that since steam was produced by the petitioner co....