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TMI Blog1990 (4) TMI 122X X X X Extracts X X X X X X X X Extracts X X X X ..... 369.225 M.T. of sulphuric acid and used it in the manufacture of zinc sulphate by availing exemption under Notification 81/75 dated 22-3-1975. They also obtained L-6 licence and observed formalities of Chapter X of the Central Excise Rules, 1944, which is a requirement of the notification. The Assistant Collector, however, issued a Show Cause Notice on 28-8-1986 calling upon them to show cause why Central Excise duty of Rs. 74,774.14 be not recovered from them under Section 11-A of the Central Excises Salt Act, 1944 on the sulphuric acid brought by them for manufacture of zinc sulphate without payment of duty on the ground that with the coming into effect of the Central Excise Tariff Act, 1985, zinc sulphate no longer qualified to be fert ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an be only for non-use of the material procured for the purpose for which it was so procured under duty concession. This was not the case with the appellants as admittedly, they have used the sulphuric acid in the manufacture of zinc sulphate only and in such an event, there will be no question of following the Chapter X procedure and the duty short-levied if any, as then to be demanded only from the manufacturer and not from the appellants. 3. Shri Sunder Rajan, the learned DR appearing for the department contended that under the Central Excise Tariff Act, Chapter Note 2 of Chapter 31 lays down that the term fertilizer applies only to a product of the kind used as fertilizer and containing as essential constituents atleast one of the fer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . I) No. 74/66-CE dated 30-4-1966, the Central Government hereby exempts sulphuric acid falling under Sub-heading No. 2802.20 of the schedule to the Central Excise Tariff Act, 1985 (5 of 1986) intended for use in the manufacture of fertilizers, from the whole of the duty of excise leviable thereon : Provided that :- (i) the Assistant Collector of Central Excise is satisfied that the said sulphuric acid has been so used; and (ii) in respect of such use elsewhere than in the factory of production of sulphuric acid, the procedure set out in Chapter X of the said Rules shall be followed". It is seen that the notification, while specifying the Sub-heading 2802.20 for sulphuric acid does not do so in respect of fertilizer i.e. the notif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ategory. It is seen from the Handbook on Fertilizer Usage", brought out by the Fertilizer Association of India, New Delhi, that the distinction between nitrogen, phosphorus and potassium which are to be found in the major fertilizers and micronutrients, lies in the fact that nitrogen, phosphorus and potassium are used in large quantities by plants. These are, therefore, called major or primary nutrients. Calcium, magnesium and sulphur are required relatively in small but inappreciable quantities and are called secondary nutrients. Iron, zinc, manganese, copper, boron, molybdenum and chlorine are required by plants in small quantities for their growth and development. Hence these are referred to as micronutrients or trace elements. If nitro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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