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TMI Blog2010 (3) TMI 561X X X X Extracts X X X X X X X X Extracts X X X X ..... able to duty at the rate of 16% BED. The said products are regularly supplied for various industrial uses and are cleared on payment of duty under cover of invoice as per Rule 8 read with Rule 11 and the monthly returns are also filed as per Rule 12 of the Central Excise Rules, 2002. 3. The said sulphuric acid are also used for manufacturing of fertilizers and as a measure of relief to the fertilizer manufacturers, they are allowed to procure the said goods i.e. sulphuric acid under bond without payment of duty by issuing appropriate CT-3 certificate to the sulphuric acid manufacturers under the provisions of Notification No. 4/2006 dated 1-3-2006. Accordingly, the appellants have supplied the said goods under CT-3 certificate. The appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... annot be considered as exempted goods. To support his contention he placed reliance on various decisions as under : (1) CCE, Nagpur v. Ballarpur Industries Ltd. - 2007 (215) E.L.T. 489 (S.C.) (2) CCE, Mumbai v. DCW Ltd. - 2009 (234) E.L.T. 163 (Tri.-Chennai) (3) CCE, Vapi v. Advance Surfactants India Ltd. - 2008 (88) R.L.T. 275 (CESTAT-Ahmd.) (4) Kesoram Rayon v. CCE, Kolkata-IV - 2007 (83) R.L.T. 397 (CESTAT-Kol.) (5) CCE, Jaipur v. Guljag Industries Limited - 2008 (86) R.L.T. 133 (CESTAT-Del.) (6) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the value of sulphuric Acid is not sustainable and credit on inputs is not tenable in respect of the sulphuric acid supplied duty free under Chapter X Procedure. In the case of CCE, Jaipur v. Guljag Industries Limited reported in 2008 (86) RLT 133 (CESTAT-Del.) again it was held that goods removed wherein it was held that the Rule 57CC of the said erstwhile Rules is not applicable in respect of clearance under Chapter X procedure, which is neither exempted goods nor chargeable to Nil rate of duty. Further I find that the impugned order has been passed by the lower appellate authority following the decision of the Ballarpur Industries Ltd. (supra). I find that in the case of Ballarpur Industries Ltd. ratio has been laid down in para 8 wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Aureola Chemicals Ltd. v. CCE, Indore reported in 2004 (175) E.L.T. 148 (Tri. - Del.) is squarely applicable to this case wherein it was held that the appellants were clearing the Spent Sulphuric Acid under Chapter X Procedure to various manufacturers of fertilizers against CT-2 Certificates. The obligation is on the receiver of such goods to use the same in a specified industrial process. In case, the goods received under this procedure were not used for specified industrial process, the person who receive the goods is liable to pay the duty hence the goods cleared under Chapter X Procedure are neither exempted nor said to be chargeable to Nil duty, thus duty is not payable under Rule 57CC. In this case also, the goods cleared by the app ..... X X X X Extracts X X X X X X X X Extracts X X X X
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