1968 (2) TMI 36 - SUPREME COURT

Whether what he actually produces by combusting limestone with coke is carbon dioxide?

Whether it is compressed carbon dioxide as contemplated by Item 14-H?

Held that:- The mere fact that at one stage or the other kiln gas is pressed at 40 to 45 lbs. per sq. inch by a pump or otherwise cannot mean that it is compressed carbon dioxide. At the same time the duty being on manufacture and not on sale the mere fact that kiln gas generated by these concerns is not actually sold would not make any difference if what they generate and use in their manufacturing processes is carbon dioxide. The fact that the gas so generated has carbon dioxide below 99 per cent and does not conform to the specifications of the Indian Standard Institution also would not matter for the gas may be sub-standard, provided what is produced is carbon dioxide.

Thus the gas generated by these concerns is kiln gas and no carbon dioxide as known to the trade i.e. to those who deal in it or who use it. The kiln gas in question therefore is neither carbon dioxide nor compressed carbon dioxide known as such to the commercial community and therefore cannot attract Item 14-H in the First Schedule. Appeal allowed.