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2011 (4) TMI 1011 - HC - Central ExciseSeizure of records and documents as well as goods - Whether the process of prilling amounts to manufacture or not - The petitioners obtain Ammonium Nitrate Melt, a chemical having composition of NH4NO3 and remove by process evaporation/prilling extra moisture from the Ammonium Nitrate Melt which according to the petitioners does not result in any change in the chemical composition at all of he duty paid Ammonium Nitrate Melt purchased by the petitioners from the open market. Held that:- it is apparent that it is not permissible for the officers of the Central Excise department to act contrary to the Circulars issued by the Board. In the facts of the present case, of the Circular No. 44/89 dated 19th July, 1989 the Board had desired that every jurisdictional Collector of Central Excise should strictly ensure that no Central Excise duty is paid on such prilled ammonium nitrate as obtained from melt ammonium nitrate and no Modvat Credit of such duty, even if paid is allowed. The said Circular continued to hold the field despite the subsequent decision of the Tribunal in I.D.L. Chemicals Ltd. v. Collector of Central Excise (1993 - TMI - 82628 - CEGAT, NEW DELHI ) as well the decision of the Larger Bench of the Tribunal in Supreme Chemical Works v. Collector of C.Ex. Jaipur (2000 -TMI - 48825 - CEGAT, NEW DELHI) till the same came to be withdrawn by Circular No. 848/06/2007-CX., dated 18th April. 2007. In the circumstances, in the light of the law laid down by the Apex Court in the above referred decisions, it was not permissible to the respondents to act contrary to the Circular dated 19th July, 1989 till the same came to be withdrawn on 18th April, 2007.
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