Manufactured LSHS Captively Consumed for Electricity Generation: CESTAT quashes Excise Duty Demand

The CESTAT quashed an excise duty demand against Indian Oil Corporation Limited (IOCL) related to the captive consumption of Low Sulphur Heavy Stock (LSHS) for electricity generation. The tribunal ruled that LSHS, when used for electricity generation within the same facility, is not subject to excise duty under the prevailing laws. This decision is a significant relief for industries that generate their own electricity using in-house resources and clarifies the tax treatment for such activities.