NATIONAL FERTILIZER LTD Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THE appellants were given a notice contravention of rule 192 and 196 of Central Excise Rules, 1944 during the period 8/93 to 3/97 as it was observed that deliberately, by using the NGL received under Chapter X procedure on concessional rate of Notification 75/84 to be used in the manufacture of fertilizer or Ammonia deliberately used it in the generation of power for which neither the appellants had applied for not permitted by the department. Thus this diversion of 61454 K.L of NGL for generation of electric power which in turn was used for driving various motors, equipments in the plant as well as for factory services and lighting in site office, administrative building and were put to notice why the concession should not be withdrawn, the B -8 bond forfeited and differential duty of Rs. 2,94,46,288/ - be recovered from them involving the provisions of extended period and penalty be imposed under Rule 173Q of Central Excise Rules, 1944.

(2.) THE Commissioner found : -

(3.) HEARD the appellants and the DR and considered the submissions and the material on record we find : -