9911796707
TMI Blog1994 (2) TMI 166X X X X Extracts X X X X X X X X Extracts X X X X ..... or "Solvent-75" and Paraldehyde manufactured by the appellants - according to the Department the benefit is not available as these two final products are not specified as such in the notification while according to the appellants the two products are only wastes or by-products and not final products or alternately, once acetaldehyde is manufactured and entitled to the benefit of the scheme, its further polymerisation into paraldehyde cannot disentitle it from the above benefit. 2. We have heard Shri V. Lakshmikumaran, learned Advocate and Shri M.M. Mathur, learned JCDR. 3. Under the provisions of Notification No. 231/87 certain finished excisable goods referred to as final products such as Acetaldehyde, Butanol, Acetone, etc. have been sp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on; cyclic polymers of aldehydes; paraformaldehyde". Besides, consumption factor of ethyl alcohol in paraldehyde @ 2.696 Kilolitres of ethyl alcohol for 1 metric tonne of paraldehyde i.e. 2.696 KL/MT has been worked on the basis of information supplied by the appellants themselves in their letter dated 13-6-1989 wherein the chemical properties and percentage purity of paraldehyde has been mentioned as under: Sp. gr. 25oC/25oC .. 0.986 to 0.990 Water contents, % wt. (Max.) 0.1 Colour .. Colourless transparent liquid Acid content as Acetic Acid % by wt. (max.) .. 0.50 Organic impurities, % by wt. (max..) .. 1.0 Residue on evaporation, % by wt. (max..) .. 0.1 Freezing point .. 10.5 - 12.5oC Purity of Product .. 99% 3.2& ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , and it is one of the safest of hypnotics. 4. From the above it is well established that paraldehyde is a finished product and by no stretch of imagination can it be considered as a waste or by- product. The alternative argument of the learned Counsel for the appellant that once acetaldehyde which is admittedly covered under the money credit scheme comes into existence the further polymerisation of the same into paraldehyde would also come under the purview of the money credit scheme is not acceptable as the scheme is available only for specified final products and as paraldehyde which is not specified, the benefit of the scheme is not applicable thereto. 5. The appellants' letter dated 13-6-1989 describes the composition of S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dit scheme is not available for its clearance. 7. The other plea of the appellants is that the demand is partly barred by limitation as the show cause notice demanding duty for the period from 1-11-1987 to 31-5-1989 has been issued on 16-6-1989. The lower appellate authority has held that the provisions regarding recovery of wrong credit under Rule 57-P are distinct from those under Rule 57-I and also from recovery of duty not levied or not paid or short levied or short paid under Rule 9(2) and that no limitation can be applied for recovery of wrong credit under Rule 57P which falls under Section AAA of the Central Excise Rules and we see no reason to take a different view and accordingly hold that the demand is not hit by time bar. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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