RELIANCE INDUSTRIES LTD Vs. DESIGNATED AUTHORITY

JUDGEMENT

(1.) This Appeal has been filed against the impugned final order dated 29.11.2000 passed by the (CEGAT) Customs, Excise and Gold (Control) Appellate Tribunal, New Delhi.

(2.) We have heard learned counsel for the parties.

(3.) The appellant is a multi-product company and has various business activities including manufacture of Pure Terephatalic Acid (for short PTA, which is used for the manufacture of polyester yarn (which in turn is used for manufacture of textiles). Apart from the manufacture of PTA, the appellant, inter alia, has a captive power plant from which it draws electricity. The appellant also draws electricity from the Grid for the manufacture of PTA. The cost of electricity forms a significant part of the cost of production. For the electricity drawn from the Grid, the appellant has to pay a tariff rate at the market price of the electricity, while regarding electricity drawn from the captive power plant the appellant transfers electricity at the market rate to its PTA unit.