TMI Blog1987 (5) TMI 135X X X X Extracts X X X X X X X X Extracts X X X X ..... osphate (SHMP for short). The department alleged that the appellant company suppressed the above fact and instead declared to the department that sulphuric acid was being used in the manufacture of fertilizers and claimed the benefit of Notification No. 81/75. 2. Appellants have claimed that they had plainly stated the facts in two schedules attached to their application for licence for the manufacture of SHMP and phosphoric acid. 3. In the order-in-original, the Collector has held that the use of sulphuric acid in the manufacture of phosphoric acid cannot be considered as use of the sulphuric acid in the manufacture of fertilizer because phosphoric acid is an independent commodity, known to the market as such, and has distinct use from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , therefore, has to be decided giving opportunity to the assessee if he is aggrieved by this order, to seek remedy before the Tribunal." 6.Heard Shri J. Banerjee, advocate for the appellant and Shri Shishir Kumar, SDR for the respondent. 7.Shri Banerjee submits that the issue in this matter is covered in his favour by the order of this Bench No. 530/86-C, dated the 12th September, 1986 in a matter pertaining to the same appellant. 8. We have seen the above cited order of this Bench which relates to appeals filed by the Collector of Central Excise, Patna against order-in-appeal No. 297/82, dated 20th September, 1982 of the Central Board of Excise and Customs. The Tribunal upheld the preliminary objection raised on behalf of the appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r had used to deny the benefit of exemption is that sulphuric acid in this process results in the manufacture of phosphoric acid, which is separately classifiable and independently excisable product. However, the issue before us is not the liability to duty of the phosphoric acid which is produced as an intermediate product in the course of the use of sulphuric acid in the manufacture of fertilizer. We are, therefore, not making any comment on this issue. 11. In the light of the foregoing discussion, we hold that the use of sulphuric acid, as in the present matters in the manufacture of fertilizers is fully covered by Notification No. 81/75. Both, the demand for duty and the penalty imposed are, therefore, set aside. 12. Appeals allowed ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
