COMMISSIONER OF CENTRAL EXCISE, CHANDIGARH Vs. GURDASPUR DISTILLERY

JUDGEMENT

(1.) The present appeal has been filed under Section 35L(b) of the Central Excise Act, 1944 ( the Act ) against the Final Order No.63/2002-C dated 15th March 2002 in Appeal No.E/2659/2001-C passed by the Customs, Excise & Gold (Control) Appellate Tribunal, New Delhi [for short the Tribunal ].

(2.) The issue involved in the present appeal is whether Methane gas classifiable under Chapter Heading 2711.29 specified in the Schedule to the Central Excise Tariff Act, 1985 is liable to excise duty when consumed captively and not marketed.

(3.) Briefly stated, the facts of the case are that the respondent-assessee was engaged in the manufacture of de-natured Ethyl Alcohol and during the manufacture of de-natured Ethyl Alcohol, a residue known as spent wash comes into existence and the same is reacted in a closed type digester and Methane gas is produced which, in turn, is used by the respondent as fuel in distillery. A show cause notice dated 28th April 2000 was issued by the Revenue, the appellant herein, to show cause as to why excise duty of Rs.17,83,678/- be not imposed on the Methane gas produced by the respondent and used captively during the period from 01.04.1995 to 31.07.1997 by invoking extended period under the proviso to Section 11A(I) of the Act.