TMI Blog1982 (9) TMI 231X X X X Extracts X X X X X X X X Extracts X X X X ..... Collector of Central Excise, Patna demanding duty of ₹ 4,81,000/- under Rule 9(2) of the Central Excise Rules, and imposing a penalty of ₹ 25,000/- on the appellants. The Collector has observed that as the electricity used for filtering water in the Settling Tank Pump House has not been charged to duty and it is not disputed that part of the water filtered in the Settling Tank Pump Hou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of the water filtered in the Pump House is supplied to other than the industrial units, as the Pump House itself is part of the industrial unit and the electricity is consumed in that pump house,the requirement of Notification No. 52/78 is fully satisfied. It has also been contended that there was no suppression of information or mis-statement and the scrutiny of RT-12 returns has been finalise ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be for use in the industrial unit and accordingly, he has held that the exemption given in Notification No. 52/78 was not admissible. He has accordingly raised a demand for duty. He has overlooked the fact that exemption Notification No. 52/78 only stipulates that the electricity generated in the industrial unit should be used in the industrial unit and in this particular case, as the Pump House ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al unit and used for such industrial unit is exempt from the whole of the excise duty, subject to the satisfaction of the Assistant Collector of Central Excise about the actual use. The question for consideration, therefore, is whether the electricity in question has been used in the industrial unit. The Collector has also posed the very question in his Order, but his finding is untenable, as the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ose assessments and to go back for raising demands for duty under Rule 9(2). The role of the Settling Tank Pump House could not have been unknown to the Department. Even on that ground, the demand for duty must be held to be time-barred. In any case, that question is not really relevant, as even on merits, the Collector s orders are not sustainable. The orders of the Collector are accordingly set ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
