2005 (9) TMI 495 - AT - Central Excise

Summary

Issues:
Whether "Sodium Hypochlorite solution" qualifies for exemption as "Bleach liquor" under Notification No. 7/94-C.E.

Detailed Analysis:
The case involved a dispute regarding the eligibility of "Sodium Hypochlorite solution" for exemption as "Bleach liquor" under a specific notification. The lower appellate authority had granted the exemption based on a previous tribunal decision. The Revenue appealed against this decision, arguing that since "Sodium Hypochlorite" was separately listed in the notification, it could not be considered part of "Bleach liquor."

During the hearing, the Revenue contended that specific entries in the notification precluded the inclusion of "Sodium Hypochlorite" under "Bleach liquor." However, the respondent's counsel cited tribunal decisions where "Sodium Hypochlorite" was considered part of "Bleach liquor" under similar notifications. The counsel also highlighted that the Supreme Court had upheld a tribunal decision supporting this interpretation.

After considering the arguments, the Tribunal was tasked with determining whether "Sodium Hypochlorite solution" fell under the definition of "Bleach liquor" in the notification. The notification exempted specified goods from excise duty, with different conditions for different items. A Chief Chemist's opinion from 1988, supported by the Board, stated that "Bleach liquor" referred only to "Calcium Hypochlorite," not "Sodium Hypochlorite solution."

The Tribunal noted previous decisions where "Sodium Hypochlorite solution" was considered part of "Bleach liquor" under a different notification. However, a crucial distinction was observed between the two notifications in question. While an earlier notification did not list "Sodium Hypochlorite" separately, the current one did. Therefore, the Tribunal concluded that "Bleach liquor" in the current notification referred specifically to "Calcium Hypochlorite," and "Sodium Hypochlorite solution" did not qualify for exemption under that entry.

In the final decision, the Tribunal set aside the lower authority's order and allowed the Revenue's appeal, emphasizing the legislative intent behind the separate listing of "Sodium Hypochlorite" in the notification. The judgment was delivered on 28-9-2005.