TMI Blog2015 (11) TMI 705X X X X Extracts X X X X X X X X Extracts X X X X ..... a clarification in the Circular No.236/70/96-CX dt. 01/08/1996 that conversion of anhydrous ammonia into aqueous solution of ammonia does not amount to manufacture. In the case of Hari & Mahesh (P) Ltd. Vs. CCE, Haldia [2008 (8) TMI 178 - CESTAT, KOLKATA], the Tribunal also had taken the view that conversion of anhydrous ammonia into liquid ammonia or ammonia aqueous solution does not amount to manufacture. - impugned order is set aside - Decided in favour of assessee. - E/773/2009-DB - Final Order No. 21474 / 2015 - Dated:- 28-5-2015 - Shri G. Raghuram, President And Shri B.S.V.Murthy, Technical Member For the Petitioner : Shri Karan Talwar Shri G. Prahlad, Advocates For the Respondent : Dr. A.K. Nigam, Addl. Commissioner( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that are to be considered are: (a) the activity of filling of duty paid anhydrous ammonia from tankers into cylinders amounts to manufacture in terms of Chapter Note No.9 to Chapter 28 or not and (b) the activity of dissolution of anhydrous ammonia with water and getting aqueous ammonia or liquour ammonia amounts to manufacture or not. 5. As regards the first issue, the issue is no longer res integra and had come up before the Tribunal and this Tribunal in the case of CCE, Mumbai-I Vs. Sanghi Oxygen (Bombay) Pvt. Ltd. has considered the very same Chapter Note and a similar activity of filling of oxygen gas in tankers to cylinders and had come to the conclusion that the process does not amount to manufacture. 6. The Chapter Note No.9 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sue i.e. whether adding water to anhydrous ammonia resulting in liquor ammonia can be treated as excisable activity, the Central Board of Excise and Customs has taken note of the fact that the activity is a simple one of dissolving ammonia in water under pressure for convenience of transportation. While transporting at the dispatch end, the ammonia is dissolved in water under pressure and at the receiving end the pressure is removed resulting in ammonia gas again becoming available, leaving behind only water. The process of dissolving ammonia in water under pressure is only for a mode of transportation; the aqueous ammonia is not used as such; and the process described is a very simple one not requiring any major technology. From the descri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the instant case is not disputed since NH4OH has been specifically defined under Heading 28.14. Technically also, adding of water to a particular substance by any stretch of imagination could not be treated as a process amounting to manufacture. At the dispatch end the goods are in the form of gas (Anhydrous Ammonia) and at the receiving end also it emerges in the same form. Accordingly, it can be concluded that the process of conversion of anhydrous ammonia into aqueous ammonia does not amount to manufacture within the meaning of Section 2(f) of the Central Excise Act, 1944 and if the anhydrous Ammonia is duty paid no further duty is payable on the aqueous solution. In view of the above discussions, I am convinced that no duty liability ..... X X X X Extracts X X X X X X X X Extracts X X X X
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