TMI Blog1995 (8) TMI 113X X X X Extracts X X X X X X X X Extracts X X X X ..... Corpn. during the period from 1-3-1986 to 31-5-1986 under Rule 9(2) of the Central Excise Rules, 1944 read with Section 11A of the Central Excises Salt Act, 1944. For the contravention of the various provisions of the Central Excise Rules, the Collector has imposed a penalty of Rs. 17,000/- under Rule 173Q of the Central Excise Rules, 1944. The facts of the case are that the assessee had obtained L-4 Licence on 30-5-1986 for manufacture of Liquid Oxygen Explosives, though they started manufacturing liquid oxygen explosives from earlier period. During the months of March, April and May, 1986, they manufactured and cleared 280.4 FC, 216.0 FC and 157.8 FC of liquid oxygen explosives and cleared the same to M/s. Orissa Mining Corpn. The depar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... had pointed out that there is no specified premises for the soaking of jute stick powder bags in the liquid oxygen. The actual premises where blasting was done falls quite often under different Central Excise jurisdictions far apart from their various depots including Deitari They have pleaded that the jute stick powder bags soaked in liquid oxygen have short shelf life. That they are required to be used at a specified time and place and the process of soaking bags to be arranged accordingly. Therefore, they had stated that the item cannot be considered as marketable item and levy of excise duty does not arise. They had further contended that Liquid Oxygen is not manufactured exigible goods falling within the meaning of Chapter 36 of the Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ags is only a means for blasting at the site. They were manufacturing liquid oxygen exmplosives which was clearly classifiable under Chapter 36 and the same was not exempted under Notification No. 179/77, dated 18-6-1977. He submitted that the item is classifiable under Heading 36.01 and in this context, he relied on the ruling rendered in the case of Associated Cement Co. Ltd. v. Collector of Central Excise as reported in 1989 (40) E.L.T. 159, wherein the Tribunal has held that ANFO obtained by mixing together `Ammonium nitrate and fuel oil is classifiable as `prepared explosives under Chapter 36 of Central Excise Tariff. While holding this view, the Tribunal has relied on the ruling of Singareni Collieries Co. Ltd. v. CCE as reported in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot about the process of blasting. This liquid oxygen is utilised as a product in the process of blasting. The liquid oxygen is a separate commodity and we are not concerned with the question of manner and use before blasting. The liquid oxygen has to be considered as goods within the meaning of Section 2(f) of the Central Excises Salt Act. Therefore, the Collector was justified in holding the item as goods. The appellants have contended that there has been no suppression of facts and they were paying duty in respect of clearances made from their unit at Daitari. They have also claimed Modvat. In the case of Kesoram Cements, the Tribunal remanded the case to the lower authorities to consider the case of Modvat. Therefore, in the interest o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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