TMI Blog1998 (7) TMI 275X X X X Extracts X X X X X X X X Extracts X X X X ..... facture Potassium Metal which was used by them to manufacture heavy water. They did not declare the activity of manufacture and removal of Potassium metal as the same was consumed in plants owned by Government of India and benefit of Notification No. 200/86 was available to them. The Potassium metal was also removed to other heavy water plants at Talchar, Tuticorin and Thal; that the Collector, Central Excise, in the impugned order, dated 30-5-1991, confirmed a demand of Excise duty amounting to Rs. 18,32,297.20 in respect of Potassium metal cleared during the period from 1-3-1986 to 30-9-1987 holding that the impugned product was cleared to Rashtriya Chemical and Fertiliser Ltd. (RCF) Heavy Water Plant at Thal and since RCF was not a depar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sources and provide the same to RCF; that it was the responsibility of the DAE under the Agreement to obtain all necessary approvals, sanctions and clearances from the Government of India including industrial licences, foreign exchange sanctions, import licences, DGTD clearances, etc. The ld. Advocate contended that the Potassium metal was used by the Department of the Atomic Energy by sending the same to RCF, Thal for use in the manufacture of heavy water and accordingly the benefit of Notification No. 200/86 was available to them. He also mentioned that the Central Government under Order No. 616/94-CX, dated 4-7-1994 exempted Potassium Metal from payment of duty during the period from 1-9-1987 to 15-8-1989 and by Notification No. 168/89, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the First Schedule to the Central Excises and Salt Act, 1944 (1 of 1944) as it existed immediately before the commencement of the Central Excise Tariff Act, 1985 (5 of 1986), from the whole of the duty of excise leviable thereon which is specified in the first mentioned Schedule : Provided that - (i) such goods are manufactured by the factories belonging to the Central Government and are intended for use by the Departments of the said Government; or (ii) such goods are manufactured by a factory belonging to any State Government for purposes declared by Parliament by law to be incidental to the ordinary functions of that Government; or (iii) such goods are products of a village industry and the Khadi and Village Industries Com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /s. Rashtriya Chemicals Fertilisers Ltd. that in pursuance of the decision to set up a Heavy Water Plant based on Ammonia Hydrogen exchange process and the fact that M/s. RCF had commenced construction of two contiguously placed Ammonia Plants at Thal - Vaishet in Maharashtra, the DAE decided to get their Heavy Water Plant constructed, commissioned, operated and maintained by RCF on their behalf. The ld. Advocate has rightly pointed out the clause 2.1. in the Agreement which clearly provides that the Department of Atomic Energy shall be the owner of the Plant. From the various terms and conditions of the Agreement it is obvious that the Heavy Water Plant at Thal belonged to DAE and was only operated and maintained by RCF. As such it remai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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