TMI Blog2007 (3) TMI 120X X X X Extracts X X X X X X X X Extracts X X X X ..... ken. While manufacturing STPP, Neutral Filter Cake (NFC) is also produced, which is used by the appellants in the manufacture of Di-Ammonium Phosphate (DAP), a fertilizer which is fully exempt from excise duty. 1.1 The appellants also manufactured Acid Slurry in the manufacture of which Linear Alkyl Benzene (LAB) and Sulphonic Acid are used and credit of duty paid on these two items is taken. In the course of manufacture of Acid Slurry, Spent Sulphuric Acid is also produced, which is used by the appellants in the manufacture of SSP, a fertilizer which is exempt from excise duty. 1.2 It is the contention of the Department that Cenvatable inputs have been used in the manufacture of fertilizer which is exempted from duty, and since no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... claration filed on 11-11-99 (vide page 24 of the paper book), in which Spent Sulphuric Acid produced by the appellants was declared by the appellants and it is also stated that Spent Sulphuric Acid was being transferred by the appellants by tankers to the SSP Plant for use there. In support of his argument, he relies on Texmo Indus tries Ltd. v. CCE - 2007 (208) E.L.T. 338 (LB) which held that 8% of the value of pumps sought by the Revenue is not required to be paid, but 8% of the value of Castings which was the intermediate product is required to be paid. In this case, the Tribunal held that Castings made from duty-paid inputs is to be treated as finished goods. He also refers to the decision of the Tribunal in the case of Shivalik Agro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l product in terms of the Cenvat Credit Rules, 2004. He also held further that Spent Sulphuric Acid is also to be considered as a final product. Once the Commissioner has come to a finding that these two intermediate products are treated as final products in terms of the Cenvat Credit Rules, all that requires is that these products should either pay the duty or if exemption is sought on these products, then 8% of the value of these goods should be recovered. We find no justification whatsoever for ordering to recover 8% of the value of the exempted fertilizers in the production of which small quantity of NFC and Spent Sulphuric Acid is used in the subsequent process and in a different plant. We take note of the fact that the appellants them ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom the Department's own communication and the classification declaration submitted by the appellants and relied on by the learned Advocate for the appellants. Hence, there is no justification for demanding duty beyond the normal period of limitation on these two products, which is the subject matter of the show cause notice dated 6- 10-2004. Learned Advocate for the Revenue further states that the duty amounts paid by the appellants subsequent to the issue of the impugned Adjudication Order requires to be verified with reference to the records for the relevant period. Learned Advocate for the appellants has no objection to the case being remanded for the limited purpose of cross-checking the calculation. 4.3 Accordingly, while allowing ..... X X X X Extracts X X X X X X X X Extracts X X X X
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