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2010 (6) TMI 688 - KARNATAKA HIGH COURTWhether in the facts and circumstances of the case, the respondent-authority was justified in holding that ammonia in aqueous solution is chargeable at 12.5% although ammonia in aqueous solution is nothing but ammonia anhydrous mixed with water? Held that:- There is a conscious exclusure of ammonia aqueous solution from the list of industrial inputs as per the notification dated 30-4-2005. As such, the same is not to be taxed at 4%, but under the general category at 12.5%. Therefore, the reference made to Circular No. 236/70/96-CX. dated 1-8-1996 issued by the Ministry of Defence, Department of Revenue, Central Board of Excise and Customs with regard to conversion of anhydrous ammonia into liquor ammonia and as to whether it amounts to manufacture has no relevance. Therefore, reference is made by the counsel for the appellant to the circular. Hence, the Authority of Advance Ruling was justified in holding that the product, “ammonia, anhydrous” is different from “ammonia in aqueous solution” and thereby the rate of tax would be different i.e., 12.5% for the latter and 4% for the former product. Accordingly, the said order does not call for any interference in this appeal. Hence, the substantial question of law is answered in favour of the revenue and against the assessee.
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