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TMI Blog2003 (10) TMI 241X X X X Extracts X X X X X X X X Extracts X X X X ..... engaged in the manufacture of plastic raw material also had a plant in its factory engaged in the co-generation of electricity and steam. The raw material utilised in this plant consist either of naphtha natural gas or high speed oil. The appellant took credit of the duty paid on naphtha; at the relevant time high power diesel and natural gas were not notified as inputs duty paid on which can be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... As regards the quantities of electricity wasted, he has demanded only duty on that quantity of electricity which is notionally attributable to the quality generated by use of naphtha. As to the other, he has demanded duty on the entire quantity without proportional allocation. 2. In its decision in Essar Steel Ltd. in appeal E/1588/02, the Tribunal was concerned with similar quantity of electric ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... therefore no basis for ordering reversal of the credit in the case of such electricity. 3. The contention of the Counsel for the appellant with regard to the sale of electricity is that the total quantity that was sold has not been shown to have been produced by utilising naphtha. He contends that the quantity of electricity sold was a small proportion, of 15% or so of the electricity that was g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that situation, we think it appropriate to demand for credit to be limited to the quantity of electricity that would be notionally said to have been manufactured out of the naphtha. The matter remanded to the Commissioner solely for credit reversal by so doing.
4. The appeal is accordingly allowed and the impugned order set aside. Consequential relief.
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