9911796707
TMI Blog1998 (8) TMI 181X X X X Extracts X X X X X X X X Extracts X X X X ..... rd Shri H.K. Jain, ld. S.D.R. and Shri H.C. Joshi, ld. Counsel for M/s. Metasulf India Ltd., Respondents. 3. The Respondents manufacture insoluble sulphur of various grades. According to the Respondents, for manufacturing insoluble sulphur they need inert gas; they had set up a plant which consists of a combustion chamber where the atmospheric air is fed into a coil flame and the resultant gas is cooled and put into holding tank from where it is distributed to the plant through pipelines. The gas is entirely consumed captively. The EXO gas comprises of Nitrogen (79.70%), Carbondioxide (4.40%) and other gases (15.90%). The Additional Collector treated the Exo gas as Nitrogen gas applying Rule 2(b) and 3 of the Rules for the Interpretation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vocate submitted that the process of manufacturing EXO Gas is by burning the atmospheric air with the help of flame; that by this process the Oxygen is burnt out and what is left is Nitrogen gas with impurities; that gas so obtained cannot be considered as a mixed chemical as other gases present there are in the form of impurities. He also submitted that Notification No. 40/85 exempts Nitrogen Gas used captively; that show cause notice is time barred and extended period for issuing show cause notice is not applicable as department was aware of the manufacturing process and they were under the bona fide belief that the impugned product is not excisable being captively consumed. 5. We have considered the submissions of both the sides. The i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anufactured in a combustion chamber where the atmospheric air is fed into a coil flame and the gas so obtained is used for providing inert cover on the various equipment used by the Respondents for manufacturing their final product insoluble sulphur. The ld. Advocate has also claimed the impugned product to be nitrogen gas with impurities. In fact the Respondents from the stage of adjudication are claiming that EXO Gas is a commercial term and what is manufactured by them is nothing but Nitrogen. Taking into consideration the process of obtaining the gas, its use and the technical literature and also the fact that the Revenue has not adduced any technical evidence by referring to any technical book that the gas produced by the Respondents i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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