ORDER :

1. The short question which arises for determination in these civil appeals filed by the Department under section 35L of Central Excise Act, 1944 is: Whether Lean Gas produced by Gas Authority of India Limited (GAIL) is a manufactured marketable final product or by-product?

2. On April 1, 1999, show cause notice was issued to the assessee by the Superintendent, Central Excise, in which it was alleged by the Department that the fnoticee (assessee) had cleared Lean Gas in bulk to M/s. Indian Petrochemicals Corporation Limited (IPCL), M/s. Vikram Ispat Ltd., and M/s. Ispat Industries as Natural Gas under Chapter Heading 2611.21 claiming nil rate of duty. In the said show cause notice, however, the allegation was based on the footing that Lean Gas was a by-product after due manufacturing process stood carried out on Natural Gas to extract LPG. We quote hereinbelow the relevant portion from the show cause notice, which reads as under:

"However it is found that Lean Gas is a by-product after due manufacturing process on Natural gas to extract L.P.G. Hence Lean gas is a result of a manufacturing process and therefore attract provisions of rule 57CC of the Central Excise Rules, 1944.