9911796707
TMI Blog2009 (5) TMI 464X X X X Extracts X X X X X X X X Extracts X X X X ..... that the proceedings were initiated against the appellants by way of issue of a show cause notice dated 08-10-2003. The appellants are manufacturing Zinc Ingots. The manufacturing process of Zinc is like this. The Zinc concentrate is subjected to heating process, in which the Zinc present in the concentrate gets converted into Zinc Oxide. The Zinc Oxide is then treated with Sulphuric Acid to form Zinc Sulphate. The Sulphuric Acid is actually manufactured separately in the Acid Plant. Zinc Sulphate is subjected to electrolysis in the cell house during the course of which Zinc and Sulphuric Acid are manufactured. Part of Sulphuric Acid so manufactured is captively consumed to convert Zinc Oxide to Zinc Sulphate, while remaining is cleared on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsumed. This is the case of the department. In fact, para 6 of the show cause notice is reproduced below: M/s. HZL are therefore required to show cause to the Additional Commissioner of Central Excise, New Central Excise building, IV Floor, Port Area, Visakhapatnam-035, as to why : (a) An amount of Rs.31,40,553/- (Rupees Thirty one lakh forty thousand five hundred and fifty three only) being the duty payable on the Sulphuric acid captively consumed in the manufacture of Sulphuric acid cleared without payment of duty for use in the manufacture of fertilizers as detailed in the Annexure to this notice shall not be demanded under proviso to Section 11A(1) of the Central Excise Act, 1944. (b) An amount of Rs.31,40,553/- (Rupees Thirty one la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e manufacture of Sulphuric Acid. Thus, the Commissioner (Appeals) has completely confused the issue. On account of which initially the Tribunal also had to pass an order, wherein the issues stated were completely different from what was given in the show cause notice. In view of that, the department filed ROM and the ROM was allowed and the matter was heard. The learned Advocate appearing on behalf of the appellant gave a written submission. In the written submission also the learned Advocate has stated that the issue involved in the instant case "the issue involved in the instant case is the demand of excise duty of Rs.31,40,553/- (Rupees Thirty one lakh forty thousand five hundred and fifty three only) together with penalty and interest a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Part of the Sulphuric Acid manufactured is captively consumed to convert Zinc Oxide to Zinc Sulphate and the remaining is cleared without payment of duty for use in the manufacture of fertilizers, availing exemption under exemption Notification for different periods viz Notification Nos. 5/98 dated 2-6-98, 5/99 dated 28-2-99, 6/2000 dated 1-3-200, 3/2001 dated 1-3-01, No. 6/2002, dated 1-3-2002, and No. 6/2003, dated 1-3-2003. The detailed manufacturing process in chemical equation form is as follows: Roaster plant: 2ZnS+3O2 — 2ZnO+2SO2 Acid plant: SO2 + 1/2O2 — SO3 SO3 + H2O — H2SO4 Leaching plant: ZnO + H2SO4 — ZnSO4 + H2O Purification plant: Impurities like cobalt and nickel are removed. Zinc Electrolysis: ZnSO4 + H2O + Ze — Zn + ..... X X X X Extracts X X X X X X X X Extracts X X X X
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