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2009 (5) TMI 464 - AT - Central ExciseSulphuric acid- Notification No. 67/95- . The show cause notice has been issued on the ground that the appellant had manufactured Sulphuric Acid, the Sulphuric Acid has been captively consumed and the Benefit of Notification No. 67/95 is not available for the Sulphuric Acid captively used in the manufacture of the goods cleared without payment of duty under exemption. Since, the proviso to the said Notification clearly stipulates that the Notification shall not apply to inputs used in or in relation to the manufacture of final products which are exempt from the whole of excise leviable thereon and are chargeable to ‘nil’ rate of duty. Held that- After purification, an Electrolysis process takes place and in the Electrolysis process Zinc is produced, which is the main product. That means, the Sulphuric Acid is used in the manufacture of Zinc. Zinc is a dutiable item and when the Zinc Sulphate is subjected to Electrolysis process, Sulphuric Acid is formed. This is actually a by-product. A part of it is cleared for use of fertilizer. Thus, it is clear that the department’s contention that Sulphuric Acid is used in the generation of Sulphuric Acid is not correct. Sulphuric Acid is captively consumed in the manufacture of Zinc, which is a dutiable item. Therefore, there is no substance in the denial of the benefit of Notification 67/95 to the Sulphuric Acid captively consumed. Hence, the original order itself is not correct. The appellants are rightly entitled for the benefit of Notification 67/95 in respect of Sulphuric Acid captively consumed. Therefore, the impugned order which upholds the original order is also not correct. Thus, we allow the appeals with consequential relief.
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