Customs, Excise and Gold Tribunal - Tamil Nadu
Neyveli Lignite Corporation vs Cce on 1 March, 2006
ORDER P.G. Chacko, Member (J)
1. The learned Commissioner has demanded duty of over Rs. 60 lakhs from the appellants (Public Sector Undertaking of the Central Govt. who has obtained clearance from the "Committee on disputes" to prosecute the appeal) for the period August 2003 to January 2004. The demand was raised by denying to the assessee the benefit of exemption under Notification 5/98-CE dated 2.6.98. Entry at Sl. No. 19 in the table annexed to the Notification extended exemption to Low Sulphur Heavy Stock (LSHS) falling under heading 27.13 of the CETA schedule, intended for use as a fuel for generation of electrical energy by Electrical Undertakings, owned or controlled by the Central Govt. It, however, excluded those who produced electrical energy for their own consumption or for supply to their own Undertakings, and not for sale, from the purview of exemption. The adjudicating authority found that the appellants used part of the electricity generated by them for captive purpose and accordingly held that they did not fulfil the requirement for exemption under Serial No. 19 ibid. The learned Counsel for the appellants submits that, for an earlier period (August 98 to October 02), waiver of predeposit and stay of recovery were allowed to them vide Stay order No. 681/2004 dated 27.10.04. (copy produced by the Counsel). It is submitted that there is complete parity between the facts of the instant case and those of the earlier case. Learned JCDR, contesting the learned Counsel's submission, points out that there is difference in the present case. It is submitted that, in the instant case, part of the LSHS was used for starting up boilers, which generated steam, which, in turn, was used for generation of electricity. From the stay order produced by the Counsel, it appears to us that the factual aspect now pointed out by the learned JCDR was involved in the earlier case as well.
2. Following the above Stay order, (which was passed in appeal No. E/503/04 - M/s Neyveli Lignite Corporation Ltd.) we grant waiver of predeposit and stay of recovery of the amount of duty demanded and the penalty imposed.
3. Learned JCDR has urged at this stage that both the appeals be disposed of as early as possible. This request is not opposed. Having regard to the high stake involved in both the appeals (demand of duty of over Rs. 6.28 crores and equal amount of penalty involved in the earlier appeal and demand of duty of over Rs. 60 lakhs involved in the present one), we are also of the opinion that the appeals should be disposed of as early as possible. Accordingly, both the appeals are directed to be posted to 5.6.2006 for final hearing.
(Dictated and pronounced in open Court)