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2016 (10) TMI 673 - AT - Central Excise100% EOU - procurement of cement without payment of duty under the authority of CT 3 certificate in terms of N/N.22/2003 CE dated 31.3.2003 - The said cement was used for treatment and disposal of hazardous waste generated during the zinc smelting operations - whether the denial of exemption on the ground that the cement is not required in the manufacturing activity of final products of the appellant? - Held that: - Without controlled disposal of hazardous effluent no manufacture of zinc is possible/permitted. The lower authorities held the view that once the zinc/ lead is manufactured, the treatment of effluent is nothing to do with such manufacture. Such view is factually and legally unsustainable. Cement helps to stabilize the material and prevents leaching when dumped in landfill. We note that under clause (a) (i) of Notification No.22/2003-CE the exemption from duty is available to all goods specified in Annexure 1 to the notification when brought in in connection with manufacture or packaging of articles or for export of goods. There is no dispute in the proceedings before lower authorities about cement being covered by Annexure 1. The only dispute is that cement is not brought in connection with manufacture of zinc. We find such interpretation is too restrictive and untenable in the factual context of the usage of cement in present case. The decision in the case of INDIAN FARMERS FERTILISER COOP. LTD. Versus CCE., AHMEDABAD [1996 (7) TMI 141 - SUPREME COURT OF INDIA] relied upon. where it was held that that use of ammonia in the effluent treatment plant was a necessary part of manufacture of urea. Denial of exemption not justified - appeal allowed - decided in favor of appellant.
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