TMI Blog2012 (8) TMI 825X X X X Extracts X X X X X X X X Extracts X X X X ..... Oxygen, Nitrogen and Argon, this Bench, in the respondent’s own case, held against leviability of excise duty on the gases which were vented out to the atmosphere. gases which were vented out in the atmosphere are exempted from excise duty. The show cause notice admits the facts of venting out of the gases in the air. The Revenue has not produced any evidence that the appellants have collected any consideration of price for the gases which have been vented out in the atmosphere. The appellants have established that they have not received any consideration for the gases which have been vented out in the air. The Revenue is bound by the Board’s Circular as held by the Apex Court in the case of Dhiren Chemical Industries [2001 (12) TMI 3 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pute were exigible to duty of excise. On a perusal of the records, we find that the respondent was constrained, by the technology adopted by them for continuous manufacture of the gases, to allow some volume of the three gases to escape into the air to prevent damage of the pipeline due to accumulation of high pressure that might arise in the event of the consumers inability to ensure steady consumption of the gases supplied by the respondent. After noting this factual situation unique to the manufacture of gaseous products like Oxygen, Nitrogen and Argon, this Bench, in the respondent s own case, held against leviability of excise duty on the gases which were vented out to the atmosphere in the aforesaid manner. The decision cited by the l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dget 1996-97). 2. Para 11.8 of the Budget Instructions refers to goods falling under Chapter 27 and there is no reference to gases falling under Chapter 28 or 29. In this context, a question has been raised whether on similar basis gases falling under Chapter 28 and 29 produced in a factory and allowed to escape in the atmosphere are also not to be regarded as manufacture. The answer to this lies in the affirmative. Accordingly, it is clarified that gases falling under Chapter 28 and 29 produced in a factory and allowed to escape in atmosphere are not liable to duty. As per the above Board s Circular, gases which were vented out in the atmosphere are exempted from excise duty. The show cause notice admits the facts of venting out of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
