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2014 (9) TMI 685 - AT - Central ExciseManufacture - intermediate goods - Captive consumption of Sulphuric Acid - Exemption Notification No.06/2002-CE dated 01.03.2002 - Held that:- until the Sulphuric Acid finally manufactured comes out after attaining its required strength, the Sulphuric Acid utilized in the manufacturing system in the double contact (double absorption) process in a continuous process is neither segregated nor its quantity is ascertainable In fact, it is not a marketable commodity and hence not excisable. In recording the conclusion that Sulphuric Acid in the Circulation Tank, is not liable to duty, the adjudicating Commissioner has reasoned that there was manufacture of one product only, namely, Sulphuric Acid at the final stage, and also observed that the proposal to recover duty at two different stages - one at the intermediate stage, and thereafter, at the final stage, is incorrect, as there was no manufacture of any new excisable commodity at the intermediate stage, which is in the Circulation Tank and used repeatedly in the manufacture of Sulphuric Acid only. He also observed that Sulphuric Acid remains Sulphuric Acid at both intermediate and final stages, thereby, falling under the same Chapter Sub-Heading - Following decision of Ambalal Sarabhai Enterprise[1989 (8) TMI 72 - SUPREME Court], United Phosphorous [2000 (4) TMI 38 - SUPREME COURT OF INDIA], Bhor Industries [1989 (1) TMI 128 - SUPREME COURT OF INDIA] and Moti Laminates [1995 (2) TMI 67 - SUPREME COURT OF INDIA] - Decided against Revenue.
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