TMI Blog1989 (11) TMI 158X X X X Extracts X X X X X X X X Extracts X X X X ..... 44, if utilised for purposes specified in the Notification. The gas in question in this appeal is ammonia which is exempt if used in the manufacture of fertilizers falling under Tariff Item 14HH. 2. The appellant herein is engaged in the manufacture of Anhydrous Ammonia which is used in the manufacture of fertilizers falling under 14HH of the CET. The ammonia is removed for use in the manufacture of molten urea covered under Tariff Item 68 and the molten urea is used by the appellant in the manufacture of Melamine which is subjected to duty under Tariff Item 68. In respect of the quantity of ammonia used during the period July, 1983 to January, 1984 show cause notices were issued for recovery of duty on ammonia removed without payment of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e are combined to produce molten urea in the urea plant which is then removed to melamine plant for manufacture of melamine. During the manufacture of melamine a part of the urea is consumed in the production of melamine and the residual urea splits up once again into its original constituents namely, ammonia and carbon dioxide. The ammonia thus split is sent to a storage tank called Horten Sphere and from there it either is used to make fertilizers or other products as for example, caprolactum or it is sold as ammonia itself. He contends that the ammonia returned from the melamine plant is basically the original one which has been earlier consumed in the production of urea. He submits that it is only in respect of 1012 tonnes of ammonia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... after splitting is not the original ammonia that was used in the manufacture of molten urea. 7. We have considered the submissions of both parties and gone through the records. 8. We are unable to accept the argument of the learned Counsel for the appellant that the ammonia used in the manufacture of molten urea is again generated at a subsequent stage. The ammonia that is used in the manufacture of molten urea is consumed entirely in its manufacture and by virtue of splitting up of residual urea into its original constituents namely, ammonia and carbon dioxide, a re-generated product emerges albeit with the same name and chemical composition. The ammonia so obtained is not the original ammonia that was used in the manufacture of molte ..... X X X X Extracts X X X X X X X X Extracts X X X X
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