ORDER
1. The appellants in their Electrolysis plant produces oxygen gas which through pipeline is supplied to M/s Nangal Steels Ltd. situated at the same, place said to be a distance of about 400 metres from one another M/s. Nangal Steels Ltd. compresses this gas in cylinders and containers and then clear after payment of duty. On these facts, the Assistant Collector of Central Excise by his order dated 11-6-1976 dropped the show cause notice and demand of duty set out therein with respect of oxygen gas produced by the appellants. There were two demand notices for two different periods and the Assistant Collector by two orders dated 11-6-1976 bearing Nos. 10361 and 10362 dropped the demands. The Central Board of Excise and Customs, New Delhi felt that prima-facie the decision of the Assistant Collector of Central Excise was wrong and after following the usual procedure of show cause notice, by order dated 6-7-1983 held that oxygen gas produced by the appellants in their premises was liable to Central Excise duty. He held that gas supplied through pipeline was compressed gas within the meaning of item 14H of Central Excise tariff as it stood at the material time. He, therefore, set aside the Assistant Collector’s order and confirmed the demand. Aggrieved, the appellants have filed appeal to the Tribunal.
2. Our attention has been drawn to the following decisions of the Tribunal-
i) Punjab Breweries Ltd. Ludhiana v. Collector of Central Excise, Chandigarh, 1985 (22) ELT 513 Tribunal.
ii) Order No. 27/87-C dated 13-1-1987 Amrit Vanaspati Ltd. v. Collector of Central Excise, Meerut.
These decisions had inter-alia relied on a decision of the Supreme Court in South Bihar Sugar Mills Ltd. and Anr. v. Union ;6f India – 1978 ELT J-336 and held that compressed gas connotes a gas compressed into a container at a specified pressure to facilitate its storage, handling and transport and not a gas moving in a pipeline in a plant under pressure slightly higher than atmospheric pressure.
3. Shri Chopra also urged that Central Board of Excise & Customs had no jurisdiction to exercise revisionary powers against orders of the Assistant Collector of Central Excise and this could be done only by the Collector. He also raised the plea of limitation.
4. In view however, of our findings in favour of the appellants on merits, we are not called upon to record any findings as to the two later pleas.
5. Following the two decisions of the Tribunal and the Supreme Court decision mentioned above, we find that oxygen gas produced by the appellants and supplied through pipeline to M/s Nangal Steels Ltd. who put them in cylinders and containers and then clear them after payment of Central Excise duty, it is not liable to Central Excise duty at the hands of the appellants. We therefore, set aside the order of the Central’ Board of Excise & Customs and restore those of the Assistant Collector. The appeals are thus allowed.