9911796707
TMI Blog1996 (6) TMI 167X X X X Extracts X X X X X X X X Extracts X X X X ..... ds the dutiability of spent sulphuric acid it is observed that the same is used for the manufacture of fertilizer, chemicals etc. It has a commercial value and is marketable. In this view of the matter, spent sulphuric acid is to be charged to duty appropriately. The learned Additional Collector also held that having regard to the facts and circumstances of the case, the demand raised against the party is dropped. 2. The facts of the case, in brief, are that the respondents herein are engaged in the manufacture of acid slurry under sub-heading 3402.90; that the respondents herein have been availing modvat credit under Rule 57A of the Central Excise Rules, 1944 on sulphuric acid falling under sub-heading 2807.00; that the respondents had b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of acid slurry remains as sulphuric acid, nevertheless with impurities; that Chapter Note 1(b) to Chapter 28 states that even sulphuric acid of less than 77% concentration would be classified under CH-2807. This spent sulphuric acid falling under CH-2807 was not a refuse, waste or by-product; that that portion of sulphuric acid contained in the spent sulphuric acid cannot be said to have been used in the manufacture of acid slurry and therefore, Modvat credit on that portion of sulphuric acid stated to be used in the manufacture of acid slurry was wrongly taken by the party. The learned DR submitted that since that portion of sulphuric acid cannot be termed as an input used in the manufacture of acid slurry, therefore, the lower authorities ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... can be equally applied to the situation covered by Rule 57A of the Central Excise Rules, 1944. In the instant case, sulphuric acid was an input and therefore, modvat credit on sulphuric acid was rightly taken under Rule 57A. Since credit of duty on sulphuric acid was lawfully available and taken by the respondents, the question of denial of this credit or recovery of the amount utilized out of this credit is not sustainable simply because the spent sulphuric acid is generated as a by-product in the process of manufacture of acid slurry. We also observe that the Hon ble Allahabad High Court in the case of Varuna Sulphonators Pvt. Ltd. v. Union of India and Others reported in 1993 (68) E.L.T. 42 (All.) = 1994 (50) ECR 164 had held that Modva ..... X X X X Extracts X X X X X X X X Extracts X X X X
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