1978 (11) TMI 80

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rature of 80 to 100/C for manufacture of the above chemicals. 2. Facts of the case being that on 21-7-1971 the petitioners applied for a L.6 licence with intention to bring non-duty paid Ethylene Gas from M/s. Carbide Chemicals, Bombay and claimed the facility of bringing the same under exemption granted in Government of India's (Ministry of Finance) Notification No. 276/67 dated 21-12-1967 by following the procedure set out in Chapter X of the Central Excise Rules, 1944. 3. The petitioners informed that for manufacture of the Chemicals, the temperature in the plant is required to be brought down very low, and Ethylene Gas is used for this purpose as a refrigerant. That Ethylene Gas is compressed, liquified and expanded in the hydroge....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ne Gas is used only as a refrigerant and is not directly used for manufacture of the chemicals, it is not entitled to the exemption provided under Notification No. 276/67 dated 21-12-1967. 7. It is against the above order-in-appeal of the Appellate Collector of Central Excise, Madras, the petitioners have submitted a Revision Application to the Government of India contending therein that nowhere in Notification No. 276/67-C.E., dated 21-12-1967 it is said that the petroleum product i.e. Ethylene Gas is to be used directly for availing of the duty-exemption. That when a Notification is silent about the manner of use, it has to be interpreted that both modes i.e., direct use and indirect use are permitted, and purpose of the use should be ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ing of the Notification it is evident that any material which does not enter directly in the manufacturing process of any of the end-products would also be eligible for the benefit of the exemption because specific exemption has been made in the following terms: "excluding fuel used for any internal combustion engine." From this it would appear that such an exclusion would have been necessary if the intention was to restrict the availability of the exemption only to such excisable goods which get directly and wholly absorbed in the manufacture of the listed end products. 12. This latter view of the Government derive further support from the Supreme Court's pronouncement in the case of H. Goverdhan Das v. Assistant Collector of Central Ex....