Calcutta HC: overture’s ex-parte order , reverts case on excise duty for waste gas from carbon black manufacturing
Title: M/s Himadri Speciality Chemical & Anr v The Commissioner of Central Excise, Kolkata – IV Commissionerate & Ors.
Citation: WPA No. 22712 of 2017
Dated on: 5.1.2024
Corum: Hon’ble Mr. Justice Md. Nizamuddin
Facts of the case
In the present case the petitioner, M/s Himadri Speciality Chemical & Anr., is a manufacturer of “Carbon Black” since March 27, 2009. During the process of manufacture of Carbon Black, a Waste Gas/Off Gas/Tail Gas (hereinafter referred to as the said gas) emerges as a by-product and having regard to the environmental norms and pollution laws, petitioner incinerates the said gas so as to prevent emission of poisonous gas and being neither marketable nor stable nor transportable to other location and which is generated during the process of manufacture of carbon black, after incineration of the same, in observing pollution laws and to prevent the atmosphere being polluted and not being subjected to excise duty.
Legal Provision
The question of law involved in this writ petition is whether lean gas/waste gas containing carbon monoxide which is poisonous gas and being neither marketable nor stable nor transportable to other location and which is generated during the process of manufacture of carbon black, after incineration of the same, in observing pollution laws and to prevent the atmosphere being polluted and not being subjected to excise duty, can be made excisable on the ground that in course of incineration of the said lean gas considerable amount of heat is generated which is used in generation of electricity which is partly for captive consumption and is partly sold.
Case Analysis and Judgement
The judgement sets aside the impugned ex parte adjudication order dated 30th November, 2017 and remands the matter back to the adjudicating authority concerned to pass fresh adjudication order by allowing the petitioner to file objection against the impugned adjudication order by treating the same as show cause notice and to take all the points raised in this writ petition and supplementary affidavit, the judgments and relevant circulars and notifications petitioner intends to rely in support of its case and after giving opportunity of hearing to the petitioner or its authorised representatives within two weeks from date and final and disposes off the writ petition.
“PRIME LEGAL is a full-service law firm that has won a National Award and has more than 20 years of experience in an array of sectors and practice areas. Prime legal fall into a category of best law firm, best lawyer, best family lawyer, best divorce lawyer, best divorce law firm, best criminal lawyer, best criminal law firm, best consumer lawyer, best civil lawyer.”
Written by- Namitha Ramesh