9911796707
TMI Blog1997 (12) TMI 208X X X X Extracts X X X X X X X X Extracts X X X X ..... d in the manufacture of zinc sulphate. During the period 1-3-1986 to 4-8-1986, they brought sulphuric acid under Notification No. 81/75 and NIL rate of duty and used the same in the manufacture of zinc sulphate. Notification No. 81/75 provided exemption from central excise duty to sulphuric acid if the same was used in the manufacture of fertilisers. Since w.e.f. 1-3-1986 i.e. with the coming into effect of Central Excise Tariff Act, 1985, fertilisers were covered under Chapter 31 and zinc sulphate not having nitrogen, phosphorus or potassium as one of its constituent elements, the same was not a fertiliser, it appeared that benefit of Notification 81/75 amended vide Notification No. 78/86 was not admissible to the party. Accordingly the A. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onutrient and therefore the Collector was right in allowing their appeal. In this connection he would draw attention to the Tribunal s decision in the case of Punjab Micro Nutrients reported in 1990 (48) E.L.T. 603 (Tribunal) = 1990 (30) ECR 134 in which it was held that the zinc sulphate can be considered as a fertiliser being a micronutrient bearing product and exemption Notification 81/75-C.E. covered the sulphuric acid used in the manufacture of zinc sulphate as the latter is used as a fertiliser. 5. He would also like to draw attention in this connection to Supreme Court judgment in the case of Ranadey Micro Nutrients - 1996 (87) E.L.T. 19 (S.C.). 6. We have considered the above submissions. We observe that ld. Counsel s contention ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ken into account in terms of Supreme Court s order. It is noteworthy that in this circular the CBEC has mentioned inter alia as follows : 4. Therefore, it is clarified that micronutrient listed under Sr. No. 1(F) of Schedule 1 Part (A) of the Fertiliser Control Order, 1985 and their mixture (with or without N.P.K.) as notified by the Central Government or a State Government would be appropriately classifiable under heading No. 31.05 as Other Fertilisers". Furthermore for the purpose of our present case what is important is the language of exemption Notification No. 81/75 which grants exemption to sulphuric acid falling under sub-heading No. 2802.20 intended for use in the manufacture of fertilisers from the whole of the duty leviable ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
