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2025 (1) TMI 1437 - AT - Central Excise


**Summary of the Judgment:**In the case before the CESTAT Ahmedabad, the primary issue was whether Ammonium Sulphate used in the production of urea was liable for duty under Rule 6(3) of the CENVAT Credit Rules during the period from May 2015 to March 2016. The appellant argued that Ammonium Sulphate, used in urea (a fertilizer), was exempt from duty, although they mistakenly paid 1% duty. The Department contended that a 5% duty was applicable.The appellant relied on several precedents, including multiple decisions in "Hindustan Chemicals Company vs CCE & ST-Surat-II," which supported their position. The Authorized Representative for the Department did not strongly oppose these precedents.The Tribunal found that the issue was "no more res-integra," meaning it had been settled by previous case law. Specifically, a Division Bench of CESTAT Ahmedabad had previously ruled that Ammonium Sulphate, as a by-product from manufacturing Potassium Cyanides and Sodium Cyanides, was not liable for payment under Rule 6(3) of the CENVAT Credit Rules.The Tribunal concluded that the appeal was allowable, and the appellant was entitled to consequential relief. The appeal was thus allowed.

 

 

 

 

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