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TMI Blog2000 (9) TMI 451X X X X Extracts X X X X X X X X Extracts X X X X ..... such stationary batteries, provided that where such use is elsewhere than in the factory of production of such parts of Stationary batteries, or for the assembly of Stationary Batteries the procedure set out in Chapter X of the Central Excise Rules, 1944 is followed. 2. The department issued show cause notice as it was found that the parts of storage batteries being declared and manufactured by the appellants were removed in contravention of the Chapter X procedure and used in the manufacture of stationary batteries at the premises of another manufacturer. Benefit of the Notification was denied and the demands made for the period 4/89 to 12/89 by various show cause notices were confirmed. On appeal the Collector (Appeals) by his order after considering the scope of storage batteries and stationary batteries as under :- As per Encyclopaedia Britannica, page 284, Storage batteries are indicated as : The idea of using a chemical reaction to the store electrical energy dates back to the early experiments with electricity. If two platinum plates were used to pass an electric current through sulphuric acid solution for a short time and the current was interrupted, it was foun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rids supporting active material. 2. Alkaline accumulators, in which the electrolyte is usually potassium or lithium hydroxide and the electrodes are either : (i) Positive electrodes of nickel or nickel compounds and negative electrodes of iron : or (ii) Positive electrodes of nickel or nickel compounds and negative electrodes of cadmium. In the terms of the Condensed Chemical Dictionary, Ninth edition, Storage Battery is nothing but a Secondary battery so called, because the conversion of chemical to electrical energy is reversible and the battery is thus, rechargeable. In the Encyclopaedia Britannica referred to above, Stationary batteries have also been separately indicated and they are described as These are batteries that are used to supply stand-by emergency power for places where the cessation of electric service would be disastrous, as for example, in hospital operating rooms, naval vessels, telephone exchanges, railway Signal Systems, municipal fire alarm systems and burglar alarms for bank vaults. Different requirements for stationary service lead to construction that are different from both auto-service lead to construction that are different from both automo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... torpedoes and submarines. As compared with these systems where the batteries are fixed on a moving systems and where the battery is the main source of energy, there are several other applications when the battery is used for standby needs; that is, as an alternate source of power when the main source is absent. Such batteries are normally located at a fixed place and are stationary in nature. These are called Stationary batteries. Examples of stationary batteries are batteries used in Power Stations, in photovoltaic applications, in Telephone exchanges and in Uninterruptible power system and Emergency System in various industries. Stationary Batteries, therefore, are special type of lead acid storage batteries used in standby applications where the battery is kept stationary and is used as a source of power when the regular power source is absent. M/s. Amar Raja Batteries market their products as Amar Power Stack Stationary Batteries for use in telecommunications, UPS, Switchgear operation in sub-stations, photo voltaics and Wind Power Control System and Microwave repeater stations. So it can be safely concluded that these are batteries which are commercially known as Stationary ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... batteries. In the present case it is an admitted position that from the certificate produced before the Assistant Collector by the appellants, parts of storage batteries manufactured and cleared by them under Notification No. 68/86 were used for manufacture of stationary batteries. There is no mention in the classification list about manufacture of the parts of stationary batteries. It is therefore to be found that parts of storage batteries have been removed in this case after following certain procedure laid down under Chapter X to the manufacturing premises of another manufacturer of stationary batteries and used in manufacture of stationary batteries. (b) The question therefore, is to determine whether parts of storage batteries when so used as found by us herein above would be eligible for the benefit of Notification No. 68/86. We find that Sl. No. 1A of the table annexed to the Notification extracted herein above permits exemption of duty only on such parts when they are used in the factory of production for the manufacture of storage batteries. The Collector (Appeals) in his findings as extracted herein above has found out the difference between the storage batteries ..... X X X X Extracts X X X X X X X X Extracts X X X X
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