Central Excise - Eligibility of excise duty exemption under Notification No. 182/87-CE, dated 10-7-1987, as amended, to Ammonium Nitrate Fuel Oil (ANFO) manufactured in a shed situated within the mines area - Doubt regarding - Central Excise - 22/90-CX.3

Central Excise - Eligibility of excise duty exemption under Notification No. 182/87-CE, dated 10-7-1987, as amended, to Ammonium Nitrate Fuel Oil (ANFO) manufactured in a shed situated within the mines area - Doubt regarding Circular No. 22/90-CX.3 Dated 26-4-1990 ] [From F.No. 112/3/90-CX.3] Subject : Central Excise - Eligibility of excise duty exemption under Notification No. 182/87-CE, dated 10-7-1987, as amended, to Ammonium Nitrate Fuel Oil (ANFO) manufactured in a shed situated within the mines area - Doubt regarding. A doubt has been expressed as to whether the benefit of exemption under Notification No. 182/87-C.E., dated 10-7-1987, as amended by Notification No. 234/88-C.E., dated 27-7-1988, is available to Ammonium Nitrate Fuel Oil (ANFO), a highly explosive product, falling under heading No. 3602.00 of the CET, manufactured by cement factories in a shed in their lime stone mines and used for blasting purpose. 2. The product ANFO is manufactured by cement factories in their lime stone mines by mixing 100 kgs of Ammonium Nitrate with 6 litres of diesel oil and used for blasting purposes. As the product is highly explosive, such manufacture takes place in a separate shed called ANFO mixing shed located within the 'mine area'. 3. The issue came up for discussion in the Tariff-cum-General Conference of Collectors of Customs Central Excise (North Zone) held at Jaipur on 10th and 21st February, 1990. It was decided that the term 'workshop' as referred to in Notification No. 182/87-C.E., dated 10-7-1987 has got a very wide meaning. According to the Webster's New Twentieth Century Dictionary, 'Workshop' means a shop or building where work is done. The Shorter Oxford English Dictionary defines 'Workshop' as a room, apartment or building in which manual or industrial work is carried on. From this it would appear that scope of the term 'Workshop' need not be restricted to an area where only repairs and maintenance of the machinery is undertaken. It would rather mean a place where any work is undertaken. 4. Accordingly, it is clarified that the benefit of Notification No. 182/87-C.E., dated 10-7-1987 would appear to be admissible to ANFO manufactured in a special shed within the precincts of the mine from the date of its amendment by Notification No. 234/88-C/E., dated 27-7-1988. 5. The above guidelines may be brought to the notice of lower field formations and the trade interest may also be suitable advised. 6. All pending assessments may be finalised on the above basis.