{"id":3150,"date":"2025-03-19T17:24:21","date_gmt":"2025-03-19T11:54:21","guid":{"rendered":"https:\/\/centaxblogs.taxmann.com\/?p=3150"},"modified":"2025-03-19T17:24:21","modified_gmt":"2025-03-19T11:54:21","slug":"demand-quashed-as-filling-compressed-hydrogen-gas-into-cylinders-did-not-amount-to-manufacture-cestat","status":"publish","type":"post","link":"https:\/\/www.centaxonline.com\/blog\/demand-quashed-as-filling-compressed-hydrogen-gas-into-cylinders-did-not-amount-to-manufacture-cestat","title":{"rendered":"Demand Quashed as Filling Compressed Hydrogen Gas Into Cylinders Did Not Amount to Manufacture | CESTAT"},"content":{"rendered":"<pre><strong>Case Details:<\/strong> <a href=\"https:\/\/www.centaxonline.com\/latest-news-updates\/excise-service-tax\/101010000000390116\/demand-quashed-as-filling-compressed-hydrogen-gas-into-cylinders-did-not-amount-to-manufacture-cestat\">Surya Air Products Pvt. Ltd. Versus Commissioner of Central Excise ST, Chandigarh-II (2025) 28 Centax 119 (Tri.-Chan)<\/a><\/pre>\n<h2><em>Judiciary and Counsel Details<\/em><\/h2>\n<ul>\n<li><strong>S\/Shri S.S. Garg<\/strong>, Member (J) &amp; <strong>P. Anjani Kumar<\/strong>, Member (T)<\/li>\n<li><strong>Shri Sanjay Bansal<\/strong>, Adv., for the Appellant.<\/li>\n<li><strong>Shri Yashpal Singh<\/strong>, Authorized Representative, for the Respondent.<\/li>\n<\/ul>\n<h2><em>Facts of the Case<\/em><\/h2>\n<p>The assessee, engaged in filling compressed hydrogen gas into returnable cylinders, was issued a demand for excise duty on the ground that the process constituted \u2018manufacture\u2019 under Section 2(f)(ii) of the Central Excise Act, 1944, read with Chapter Note 9 to Chapter 28 of the Central Excise Tariff Act, 1985. The assessee received hydrogen gas through a pipeline and filled it into cylinders after filtration and compression to remove moisture. The department contended that this process altered the gas\u2019s marketability, making it liable for duty. The assessee challenged the demand before CESTAT, relying on its earlier favourable ruling, which had been upheld by the Hon\u2019ble Supreme Court.<\/p>\n<h2><em>CESTAT Held<\/em><\/h2>\n<p>The Hon\u2019ble CESTAT ruled that filtering and compressing hydrogen gas did not constitute \u2018manufacture\u2019 under excise law. Relying on the Supreme Court\u2019s ruling in the assessee\u2019s own case, it held that moisture removal and compression were part of the storage process and did not create a new commercial product. The Tribunal quashed the excise duty demand and set aside the impugned order, allowing the appeal with consequential relief as per law.<\/p>\n<h2><em>List of Cases Cited<\/em><\/h2>\n<ul>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=(2024)%2021%20Centax%20151%20(S.C.)&amp;itemType=AP\">Commissioner v. Surya Air Products Pvt. Ltd.<\/a> \u2014 (2024) 21 Centax 151 (S.C.) \u2014 Relied on [Paras 4, 6, 7, 8]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2019%20(366)%20E.L.T.%20904%20(Tribunal)&amp;itemType=AP\">Surya Air Products Pvt. Limited v. Commissioner<\/a> \u2014 2019 (366) E.L.T. 904 (Tribunal) \u2014 Relied on [Paras 4, 6, 7]<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Case Details: Surya Air Products Pvt. Ltd. Versus Commissioner of Central Excise&hellip;<\/p>\n","protected":false},"author":5,"featured_media":3181,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[49,51,63],"tags":[],"class_list":["post-3150","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-excise-service-tax","category-news-excise-service-tax","category-est-case-chronicles"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Demand Quashed as Filling Compressed Hydrogen Gas Into Cylinders Did Not Amount to Manufacture | CESTAT<\/title>\n<meta name=\"description\" content=\"CESTAT ruled that filtering and compressing hydrogen gas does not qualify as &#039;manufacture&#039; under excise law, quashing the duty demand based on a Supreme Court precedent.\" \/>\n<meta name=\"robots\" content=\"index, follow, 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