2004 (6) TMI 437 - AT - Central Excise

Summary

Issues:
Appeal against Order-in-Appeal denying Notification benefit for gases used in manufacturing final products.

Analysis:
The appeals arose from a common Order-in-Appeal where the Commissioner confirmed a duty amount and imposed a penalty on the appellants for denying the benefit of Notification No. 67/95-C.E. The issue was whether gases allowed to escape during the manufacturing process could be considered captively used, as claimed by the appellants. The appellants argued that flushing out the gases was a technical necessity before producing a new type of gas, thus falling under the Notification's benefit.

The appellants' advocate cited relevant judgments and a Board's Circular to support their contention. However, the Revenue argued that the gases were not captively used as they were final products used for maintenance/cleaning purposes, not in the further manufacturing process. The Revenue distinguished the cited cases and highlighted that the Board's Circular did not apply to the current situation. The Commissioner's Order also supported the Revenue's position, emphasizing that the gases were not used captively.

After hearing both sides, the Tribunal noted that the exemption under Notification No. 67/95-C.E. applied to products used captively in manufacturing other final products. Since the gases escaping into the atmosphere were not utilized in manufacturing any other item, the Tribunal rejected the appellants' claim. The Tribunal found the judgments and Circular cited by the appellants inapplicable to the case, upholding the Commissioner's decision. Consequently, the Tribunal dismissed the appeals, affirming the Commissioner's Order.

In conclusion, the Tribunal ruled that the appellants were not entitled to the exemption under Notification No. 67/95-C.E. for gases released during the manufacturing process. The Tribunal found no merit in the appeals and upheld the Commissioner's decision, dismissing the appeals.