Page 241 - ELT_2nd_15th April 2020_Vol 372_Part

2020 ] PEE CEE COSMA SOPE LTD. v. COMMISSIONER OF CENTRAL EXCISE, KANPUR 287

‘power’ was not defined in the Central Excise Act, 1944, its meaning could be
ascertained with the help of other statutes, namely, Section 2(g) of the Factories
Act, 1948. The finding of the Commissioner in this regard is reproduced below :
“Since the term ‘Power’ is not defined in the Central Excise Act, 1944,
and the rules made thereunder, therefore its meaning or definition is being
taken from some other parallel statute. The GAS used by the Party in the
manufacturing of ‘Laundry Soaps’ conformed to the definition of “Power”
as mentioned in Section 2(g) of the Factories Act, 1948 which reads as
under :
2(g) ”Power” means electrical energy, or any other form of energy
which is mechanically transmitted and is not generated by human or ani-
mal agency”.
From the reading of the definition, it is seen that for anything to qualify as
“Power”, it must satisfy three conditions namely :
(i) It should be electrical energy or any other form of
energy;
(ii) It should be mechanically transmitted;
(iii) It should not be generated by human or animal agency
The GAS used by the Party in the manufacture of ‘Laundry Soaps’
conformed to all the three standards mentioned above as the same being a
form of energy, mechanically transmitted through pipeline to the Party’s
factory and not generated by human or animal agency. Hence the GAS
used by the Party in the manufacture of ‘Laundry Soaps’ came within the
meaning of ‘Power’.”
20. The Commissioner also examined the definition of the term “pow-
er” in various dictionaries and observed as follows :-
“From the above meaning/definition, it is crystal clear that ‘power’ is
a particular source or form of energy. The GAS as used by the Party in the
manufacture of ‘Laundry Soaps’, was a form of energy, had a heating ca-
pacity and was supplied through pipeline not only to the Party but also to
292 other units (a public supply of energy). Therefore the GAS as used by
the Party in the manufacture of ‘Laundry Soaps’ is nothing but ‘Power’. As
per the definition of power in the factories Act, 1948, ‘Power’ only means a
form of energy. As per the party’s own contentions also, gas is a source or
form of energy. As already explained, the CNG gas in the party’s case is
very much being mechanically transmitted from the premises of M/s. GAIL
to the party’s own premises and also, within the party’s own premises dur-
ing the manufacturing process. ‘Power’ as defined in factories Act, 1948
should apply to the party’s factory also.”
21. The Commissioner, therefore, confirmed the demand and the oper-
ative part of the order is as follows :
“As regards Point No. (ii) above, it is established from the discussion
in the preceding paras that the party had been using power in the manufac-
ture of Laundry Soaps and as such the ‘Laundry Soaps’ manufactured by
the party fall under Chapter sub-heading No. 3401.11 instead of Chapter
sub-heading No. 3401.12 of the Central Tariff. They party are, therefore, not
entitled to avail the benefit of ‘Nil’ rate of duty for goods falling under
Chapter sub-heading No. 3401.12 of the Central Excise Tariff nor they are
entitled to avail the benefit of exemption contained at Serial No. 33 of the
EXCISE LAW TIMES  15th April 2020  257