TMI Blog2017 (9) TMI 413X X X X Extracts X X X X X X X X Extracts X X X X ..... cannot be considered as a process of manufacture, since the goods are sold not as CNG but as Natural Gas - demand set aside - appeal dismissed - decided against Revenue. - Excise Appeal No. 948 of 2011 - Final Order No. FO/A/77098/2017 - Dated:- 31-8-2017 - Satish Chandra, President And V. Padmanabhan, Member ( Technical ) For the Petitioner : Sh. A. Roy, DR For the Respondents : Sh. Pranit Bag S.Nigam, Adv.) ORDER Per V. Padmanabhan The present appeal is filed by the Department against the Order-in-Appeal No. 112/Bol/11 dated 22.08.2011 passed by the Commissioner of Central Excise (Appeals-IV), Kolkata. 2. The brief facts of the case are that, the assessee-Respondents is engaged in the extraction of Natural G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ural Gas which is compressed for use as a fuel or for any other purpose shall amount to manufacture and, therefore, the assessee-Respondents are required to pay duty on such CNG. 5. On the other hand, learned counsel for the assessee-Respondents justifies the impugned order. He argued that the natural gas was compressed into cascades only for the purpose of transportation to the customers premises. However, the CNG is decompressed and sold only as Natural Gas to the customers and hence no duty is liable to be paid as has been held in the impugned order. 6. After hearing both sides and on perusal of the material available on record, we find that Note 5 to Chapter No. 27 is crucial to the dispute in hand. The said Chapter Note is reprod ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in compressing the natural gas to CNG does not amount to manufacture. On going through the impugned order, I find that the lower authority has missed this crucial aspect. The appellant during the course of the hearing produced copies of contracts entered into with the industrial consumers, in terms of which the purchase of the gas by the industrial consumers is to be at normal pressure (less than 2 barg). Further, in terms of the contracts, the sales take place at the premises of the buyers and for which the element of freight is included in the price of the goods. In other words, the marketing of the goods is done not as CNG but as natural gas at normal pressure. In view of these facts, as rightly stated by the appellant, the compression ..... X X X X Extracts X X X X X X X X Extracts X X X X
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