TMI Blog2017 (6) TMI 999X X X X Extracts X X X X X X X X Extracts X X X X ..... or the Appellant Shri A. Cletus, ADC (AR) For the Respondent ORDER Per Bench The appeal is against OIA No. 78/2005 (M-I) 6/2005 (M-I) (D) both dt. 26.08.2005. The appellant is a petroleum refinery and the dispute pertains to the period July 2000 to June 2001. Naphtha is one of the petroleum products manufactured by the appellant and is used in the Gas Turbine Plant as fuel in the generation of electricity. Refinery Fuel Oil (RFO) is used as fuel to generate steam, which in turn is used in the steam turbine generator to produce electricity. The electricity so generated is used within the factory of production. However, a part of the electricity is wheeled out to the T.N.E.B. The demand has been raised by Revenue for denyin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be marketable by the lower authorities and hence he submitted that duty demand may be upheld. 5. Heard both sides and perused the records. The dispute in the present case is about the eligibility of the exemption under Notification No.67/95-CE dt. 16.3.1995 in respect of the portion of Naphtha manufactured in the appellant's factory and captively consumed in the generation of electricity. It is further on record that a part of such electricity generated by the captive power plant is wheeled out to T.N.E.B. The lower authorities have held that the appellant will not be eligible for exemption under the above notification in respect of the portion of Naphtha attributable to that used for generation of electricity wheeled out. The demand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uring naphtha and utilizing the same captively. They were also clearing a certain quantity for home consumption. At no point of time, they have informed the Department about the manufacture of different grades of Naphtha. They have also not intimated the Department as to how the various grades of naphtha have a bearing on the marketability of such products. Even now, they have not furnished any information about the material characteristics of the so-called different varieties. They have failed to furnish the technical data and the composition of the naphtha used captively vis-a-vis the supplies made out side but merely making a bald assertion that the products are different. I am at a loss to understand as to why the naphtha used captively ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cial grade. In any event there is nothing on record to even remotely suggest that the impugned product is not marketable. The impugned product is drawn only from the naphtha plant and it is capable of being used to produce hot flue gas and consequently it is marketable....... After going through the detailed reasoning of the original authority, we find ourselves in agreement with the same. Hence we disregard the plea of non-marketability of Naphtha raised by the appellant. 7. In view of the above discussions, we conclude that the duty demand raised in the impugned order by denying the benefit of Notification No.67/95 ibid is sustained along with the order of payment of interest. However, in the facts and circumstances of the presen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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