9911796707
TMI Blog1999 (8) TMI 888X X X X Extracts X X X X X X X X Extracts X X X X ..... slurry is transferred to cement mixer. Here in the Fibre Slurry, cement and fly-ash are added. Then all the material is mixed for three minutes and then pumped to agitator for storage and transfer to premixer. Slurry is further diluted in pre-mixer and fed into sheeting machine. The percentage of raw materials used in the finished product - corrugated roofing sheets per batch is as under : - Asbestos fibre 5% to 9%; Pulp 1.5% to 2%, Cement 50% to 55%, Fly ash 35 to 36%; H.G. waste 1.5% to 2%. The appellants prepare 30 to 35 batches per shift. In the pulp treatment around 250 kgs. of pulp is used with approximately 4000 litres of water and further diluted to maintain the consistency at 2.5%. Fibre slurry is mixed in Mixer II where cement, fly ash and HG waste of 575-632 kgs., 405-414 kgs. and 17-23 kgs., respectively are added on dry basis and then mixed by addition of more water along with equivalent quantity of pulp slurry as per the above composition. Major portion of the water is retrieved and sent for recuperation and recycling. Thus major portion of the water used for making the slurry is returned for re-circulation and only some percentage is present in the product in the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts amendment by Notification No. 79/93-C.E : - Exemption to goods containing more than 30% by weight of fly ash or phospho-gypsum or both. - In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excises and Salt Act, 1944 (1 of 1944), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts all goods falling under Chapter 68 of the schedule to the Central Excise Tariff Act, 1985 (5 of 1986), in which not less than 25% by weight of fly-ash or phospho-gypsum or both has been used, from the whole of the duty of excise leviable thereon which is specified in the said Schedule. 1.8 It would thus be observed that apart from reducing the percentage of fly-ash and phospho-gypsum, the expression (minus the water-content) has been deleted by the amendment dated 12-3-1993. Revenue reads this deletion as envisaging that water has to be taken into account as a raw-material for determining the use of percentage of fly-ash and phospho-gypsum in terms of the Notification No. 38/93-C.E. (as amended). If quantity of water used at 3500 litres and so is taken into account, the percentage of fly-ash and phospho-gy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hus was arrived the total quantity of raw materials used in one batch, total output of asbestos cement products (finished product) was recorded in kilograms. In this manner, percentage of fly-ash in the finished product was determined. 2.2 It is also stated by the Appellant s ld. Advocate Notification 17/95-C.E., dated 16-3-1995 amended Notification No. 38/93-C.E. by incorporating a provision for maintenance of record. In pursuance of the same, a trade notice dated 23-3-1995 was issued by prescribing a record (register) regarding receipts of fly-ash and a monthly return regarding use of fly-ash/ phospho-gypsum and of finished goods manufactured. This register has been maintained and monthly return filed regularly. 2.3 Ld. Advocate Shri V. Sridharan, by pointing out the above facts, submits that the department was all along aware of the process of manufacture since it prescribed the various records and returns of raw-materials including use of fly-ash and as to how its percentage in the finished goods was determined. To turn back now on its construction of Notification 38/93 (as amended by 79/93-C.E.), after prescription of the foregoing records and returns, is impermissible. De ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ermination of percentage of use of fly-ash with reference to the weight of the finished goods is not at all correct as has been proposed by the ld. Advocate for the appellant. 3.2 Prescription of records in earlier notifications in 1992 is of no relevance for the purpose of Notification 38/93-C.E. (as amended) because the very basis of determining percentage of fly-ash has been changed from contained in the finished goods to used in the finished goods. He, therefore, prays for dismissing the appeal. 4.1 We have carefully considered the pleas advanced from both sides. We are required to construe Notification 38/93-C.E., as amended by Notification 79/93-C.E., already set out above. Notification 38/93-C.E., dated 28-2-1993 before its amendment by Notification 79/93-C.E., envisages, on its plain reading, that fly-ash or phospho-gypsum used (in manufacture of goods falling under Chapter 68 other than those falling under Tariff Heading 68.04) should be more than 30% by weight. Notification is silent about the fact that percentage of use of fly-ash is to be struck with reference to the weight of what goods. Appellant contends that it has to be w.r.t. the weight of finished goods ..... X X X X Extracts X X X X X X X X Extracts X X X X
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