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TMI Blog1994 (10) TMI 153X X X X Extracts X X X X X X X X Extracts X X X X ..... Counsel to appear and argue. 4. We therefore, reject the request for adjournment and allow the Ld. D.R. to proceed with the matter. While doing so we also taken note of the fact that the Respondents have also filed a voluminous paper book, besides their reply to the Show Cause Notice which contains a list of documents relied by them in support of their contention. 5. Ld. D.R. stated that the main issue in this case relates to excisability and classification of the acetylene gas produced by the appellants and consumed captively in their plant for manufacture of acetylene black. 6. In the Order-in-Original the Assistant Collector has held that the acetylene gas manufactured and consumed by the firm does not confirm to ISI specification or trade nomenclature and was highly impure and explosive and was not capable of being bought and sold hence it was not goods and therefore, it was not necessary to classify it under old Tariff Item 14H. 7. The department had filed an appeal against this order but the Collector (Appeals) rejected the department s application observing inter alia that the Tariff Item 14H does not include all gases and it does not say anything about marketable c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ocuments a report of the Chemical Examiner of the Customs House, Cochin and the Board s letter (CBEC Tariff Advice No. 68/81, dated 15th July, 1981 and certificates from Union Carbide, Eastern Air Products and Indian Oxygen. 17. The Respondents have also included a lot of technical literature and excerpts from various books including Encyclopaedia of Chemical Technology by Kirk-Othmer. 18. Ld. D.R. further submitted that he would like to draw attention to the Memorandum of Appeal and in particular to the grounds of appeal mentioned therein. It was his submission that in this case the acetylene gas is produced by reacting Calcium Carbide with water and transmitted by a pipeline for captive consumption within the factory for production of acetylene black. 19. There is no dispute about the process of manufacture. There is also no dispute that the acetylene gas so produced is in gaseous state and is not dissolved in water. 20. There is also no dispute that the gas so produced contains a very small percentage or traces of impurities. 21. There is no dispute that the gas is produced in a continuation process and utilised as such. 21(a). There is also no dispute that at one s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m central producing station to industrial users in the context of handling problem due to its explosive nature. The excerpts from Dangerous Properties of Industrial Material also refer to the presence of impurities in commercial acetylene and go on to mention that in general industrial practice however, acetylene does not constitute a serious hazard. 26. The excerpt from Micropaedia-Encyclopaedia Britannica mentions that the acetylene prepared from Calcium Carbide usually contains traces of phosphine. 27. It was his submission that thus it will be seen from the excerpts of technical and other literature filed by the Respondents themselves that acetylene gas containing a bit of impurities continues to be recognised commercially as acetylene. This also shows that in view of its explosive nature what the persons concerned have to do is to take some extra precautions and transmitting through pipe line is one of the modes of transport adopted. 28. The literature filed by the Respondent also proves that it is a commercial commodity i.e. it is marketable or capable of being marketed albeit with a bit of precaution. 29. It was therefore his contention that the lower authorities hav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and dutiable as such. 36. We have considered the above submissions. We have also gone through the Respondents contentions including submissions made in the reply to the Show Cause Notice and also perused the documents filed by them in the paper book. 37. We observe that the Ld. DR s contentions have strong force. 38. We note in this connection that there is no dispute on facts relating to either the process of manufacture, the mode of its transmission or captive consumption by the appellant. There is also no dispute about the results of the test analysis and the Ld. D.R. has proceeded on the basis of the test analysis filed by the Respondents themselves. 39. We also note that the Ld. D.R. has referred to the excerpts from the technical literature (again filed by the Respondents themselves) and rightly so. 40. It is apparent from a perusal of this technical literature that the acetylene even if it is slightly impure continues to be recognised as commercial acetylene that is to say the presence of other ingredients in miniscule quantities or traces notwithstanding. 41. The literature also shows that such acetylene is also capable of being transported and marketed and is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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