1. This appeal is by the Revenue challenging the order passed by the Customs, Excise and Service Tax Appellate Tribunal (for short hereinafter referred to as CESTAT) holding that the impugned product is not excisable and therefore, there is no liability to pay duty.

2. The assessee-M/s. Mangalore Refinery and Petrochemicals Ltd. is a holder of Central Excise Registration Certificate. It is engaged in the manufacture of various petroleum products including Lower Sulphur Heavy Stock (LSHS) failing under heading 27 of the schedule to the Central Excise Tariff Act, 1985 (for short hereinafter referred to as `the Act’). The LSHS was captively consumed for the generation of steam. The steam so generated was utilised for the generation of electricity. The assessee filed classification declaration for claiming exemption from payment of duty under notification No.67/95 CX dated 16.3.1995 for captive consumption of LSHS.

3. Intelligence gathered by the department indicated that the electricity so generated was being diverted for purposes other than the use in or in relation to the manufacture of petroleum products i.e. for construction purpose within the factory premises, lightin