TMI Blog1999 (7) TMI 372X X X X Extracts X X X X X X X X Extracts X X X X ..... e are that appellants are engaged in the manufacture of fertilizer. The appellants claimed the benefit of Notification No. 74/84-C.E., dated 1-3-1984 in respect of furnace oil and Heavy Petroleum Stock (HPS) on the ground that these are to be used as feed stock in the manufacture of fertilizer in their plant. A part of furnace oil/HPS is used by the appellant for the generation of steam in their Steam Generation Plant/Nitro limestone plant as an input. They also used furnace oil in the manufacture of Methanol. The benefit of notification in respect of furnace oil and HPS used in the manufacture of methanol was denied on the ground that these inputs are not used in the manufacture of fertilizer. The benefit of notification in respect of furn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er Cooperative Limited v. Collector of Central Excise, Ahmedabad, reported in 1996 (86) E.L.T. 177 (S.C.) = 1996 (15) RLT 498 (S.C.) and submits that in this case the Hon ble Supreme Court held that the benefit of exemption notification is available to raw naphtha used in the manufacture of ammonia which was used in water treatment/steam generation and in effluent treatment plant as they are necessary part of the manufacture of fertilizer. He, therefore, submits that furnace oil and HPS are used in the manufacture of fertilizer. He further submits that the Notification No. 75/84-C.E., dated 1-3-1984 prescribes NIL rate of duty to the furnace and HPS if used as a feed stock in the manufacture of fertilizer and concessional rate of duty if th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a technical requirement and the process of manufacture of fertilizer without obtaining Hydrogen by using methanol is not possible. The appellant produced a Flow Chart showing the use of furnace/HPS in the manufacture of methanol plant and this methanol plant is used to tap gases from mid process of ammonia plant. 6.3 In respect of furnace oil and HPS used in the steam generation plant and Nitro Lime Plant, the contention of the appellant is that process of manufacture of fertilizer is an integrated process started with the Oxidation of furnace oil in presence of steam in standard shell reactor where raw gas is recovered from generation Hydrogen required for product of ammonia which is ultimately used for the manufacture of fertilizer. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Excises Madras, reported in 1985 (19) E.L.T. 617 (Tribunal) held that low sulphur heavy stock used for generation of steam could not be treated to have been used as feed stock in the manufacture of fertilizer. Respectfully, following the ratio of this decision, we do not find any merit in the contention of the appellant that furnace oil and HPS is used as feed stock for the manufacture of fertilizer. 10. The Notification No. 75/84-C.E. provides the concessional rate of duty for furnace oil and HPS intended for use otherwise then as feed stock in the manufacture of fertilizer. The appellants are using furnace oil and HPS in the manufacture of fertilizer as discussed above hence appellants are entitled for concessional rate of duty as provi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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