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TMI Blog1968 (2) TMI 36X X X X Extracts X X X X X X X X Extracts X X X X ..... re, Deputy Chief Chemist of the Central Revenue Control Laboratory, these manufacturers burn limestone with coke in a lime kiln with a regulated amount of air and generate a mixture of gases consisting of carbon dioxide, nitrogen, oxygen and a small quantity of carbon monoxide. Most of the oxygen from the air is used up by the coke in the process of burning itself. The coke so burnt supplies the heat which decomposes the limestone so as to generate carbon dioxide. The gas thus produced is sucked by a pump through a pipe which connects the kiln with the inlet side of the pump. The gas enters the chamber of the pump and is then immediately compressed by means of the compression stroke of the pump. At this stage the gas is forced into a narrower space and as a result of the compression stroke it acquires pressure exceeding the atmospheric pressure. The gas so compressed is let into the delivery pipe which connects the outlet side of the pump with the tank containing the sugarcane juice and enters the sugarcane juice with the acquired pressure behind it. But for the compression resulting in pressure the gas would not bubble in the sugarcane juice. In the tank there is besides the sugar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en filtered and the sodium bicarbonate in moist condition is left on the bed of the filter and the solution which is mostly of ammonium chloride is pumped to ammonia reaction tower where ammonia is produced. Moist sodium bicarbonate is then washed and is heated in a calciner at 200o centigrade. The sodium bicarbonate gets decomposed to give soda ash, water and carbon dioxide. Carbon dioxide thus produced is reutilised in the cycle of manufacture of soda ash. It contains 85 per cent pure carbon dioxide (according to the Company's expert 50 to 60 per cent) and is mixed with carbon dioxide sucked by the compressor from the lime kiln. The whole mixture, which contains about 60 per cent of pure carbon dioxide is compressed in the compressor to a pressure of 40 to 45 lbs. per sq. inch. Thus carbon dioxide is essential in the production of soda ash and is produced by burning limestone with coke in a kiln in the same manner as by the sugar manufacturing concerns which employ carbonation process. The carbon dioxide so produced in the kiln is first compressed in the compressor during the compresison stroke, and thereafter the piston compresses the gas in the said cylinder at pressure of more ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es cannot fall under Item 14-H. (8) that these concerns are not manufacturers of carbon dioxide as carbon dioxide is not separated from the said mixture of gases by any process nor is the carbon dioxide content in the said mixture compressed, liquified or solidified; (9) that the mere fact that the said mixture of gases is passed through a conduit pipe by a process of suction cannot mean that carbon dioxide becomes compressed carbon dioxide at that or any other stage; (10) that the term "compressed" in Item 14-H contemplates the form in which the articles sought to be levied is manufactured. There is no separation of carbon dioxide from the said mixture at any stage nor is it compressed or stored as carbon dioxide in cylinders and lastly; (11) that the duty being on goods it can be charged only on goods known as carbon dioxide in the trade and marketable as such. 7. The contentions of the Revenue, on the other hand, were - (1) that the mixture of gases generated as aforesaid is nothing but impure carbon dioxide in the sense that during the process of burning limestone with coke a small quantity of carbon monoxide is released by the burning of coke, the other gases in the mixt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anufacturing carbon dioxide an elaborate plant shown in the annexure to his affidavit would have to be set up separate from the plant and equipment used in the manufacture of soda ash and refutes the statement of the said Bakre that compressed carbon dioxide is forced through at a pressure of 40 to 45 lbs. per sq. inch or that at the bottom of the said carbonating tower pure compressed carbon dioxide is or can be isolated from the mixture of gases in that tower where chemical reaction takes place. He also refutes the statement that the process of generating kiln gas is independent of the manufacture of soda ash and states that the process of manufacture of soda ash is a continuous and integrated process wherein a certain quantity of kiln gas is released which is directly utilised without removal or storage in the manufacture of soda ash. According to him, kiln gas released during the manufacture of soda ash is never known as carbon dioxide in the market. To obtain marketable carbon dioxide from kiln gas an elaborate plan would be required for separation and purification and it is such carbon dioxide which becomes marketable after it is compressed at pressure of 1,000 to 1,800 lbs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is General Chemistry (4th ed.) p. 470 states that commercial carbon dioxide can be obtained as a bye-product of certain industries, e.g. flue gases. R. Norris Shreve in his Chemical Process Industries (3rd ed.) states that there are three important processes for commercial production of carbon dioxide, viz. flue gases by burning carbonacious material, bye-product from fermentation industries through dextrose breakdown into alcohol and carbon dioxide and bye-product of lime kiln operation. He also states that an absorption system is used for concentrating CO2 gas obtained from sources 1 and 3 to over 99 per cent, and that in all cases the almost pure carbon dioxide must be given various chemical treatments for the removal of minor impurities which contaminate the gas. Similarly Kirk-Othmer in the Encyclopedia of Chemical Technology (2nd ed.) Vol. 1, p. 725 observe as follows :- "The carbon dioxide evolved consists of both that generated by the decomposing limestone and that resulting from combustion of the carbon in the coke. The kiln gases are considerably diluted with nitrogen from the air used to burn the coke, they usually contain 37 per cent to 42 per cent carbon dioxide toget ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or separately as the Revenue insisted, it is equally possible to say that the combustion of limestone with coke results in the manufacture of nitrogen, whose content in the kiln gas is about 53 per cent. As the text-books produced before us and the affidavits show, the correct picture is that what is produced is kiln gas which consists of several gases, viz., carbon dioxide, carbon monoxide, oxygen and nitrogen, the last one being in a larger quantity than carbon dioxide. The mixture of gases so generated is known as kiln gas in the trade. i.e. to those who manufacture sugar and soda ash. The affidavits of concerns which use carbon dioxide definitely assert that kiln gas is never known in the market as carbon dioxide nor is it a marketable article in the sense that it is loose and is not transportable nor is it brought to the market for being bought and sold unless carbon dioxide is extracted out of it. Such extraction requires an elaborate plant. After extraction it would have to be compressed in cylinders of certain specifications or liquified or solidified before it can become a marketable article. 13. It is true as the Revenue contended that the gas produced through the kiln ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stage of manufacturing refined oil which fell within the description of "vegetable non-essential oil, all sorts", in Item 23 of the First Schedule. The contention would seem to assume that the goods subjected to duty must be goods known as such in the market. The contention was that the respondents after they bought raw oil with all its impurities, manufactured, by application of certain processes of refinement, refined oil which was the same as refined oil available in the market and that it was "refined oil" which became after further process the ultimate vegetable product. It was argued that the fact that the vegetable product was the ultimate product and was chargeable to duty did not alter the position that an earlier stage, the respondents manufactured "refined oil" as known to the market and that the fact that they did not put this "refined oil" the produce to it used but market the unfinished product did not affect their liability. This Court held that if a new substance was brought into existence from raw materials and that substance was the same as "refined oil" as known to the market it would be subject to duty. The question, therefore, was, was the substance sought to b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in compressed carbon dioxide. Compressed carbon dioxide is understood generally as carbon dioxide compressed in cylinders with pressure ranging from 1,000 to 1,800 lbs. per sq. inch. The mere fact that at one stage or the other kiln gas is pressed at 40 to 45 lbs. per sq. inch by a pump or otherwise cannot mean that it is compressed carbon dioxide. At the same time the duty being on manufacture and not on sale the mere fact that kiln gas generated by these concerns is not actually sold would not make any difference if what they generate and use in their manufacturing processes is carbon dioxide. The fact that the gas so generated has carbon dioxide below 99 per cent and does not conform to the specifications of the Indian Standard Institution also would not matter for the gas may be sub-standard, provided what is produced is carbon dioxide. 16. In our view, the gas generated by these concerns is kiln gas and no carbon dioxide as known to the trade i.e. to those who deal in it or who use it. The kiln gas in question therefore is neither carbon dioxide nor compressed carbon dioxide known as such to the commercial community and therefore cannot attract Item 14-H in the First Schedule ..... X X X X Extracts X X X X X X X X Extracts X X X X
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