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TMI Blog2008 (5) TMI 501X X X X Extracts X X X X X X X X Extracts X X X X ..... espondent. [Order per : T.K. Jayaraman, Member (T)]. In terms of the impugned Order-in-Original No. 12/2007 dated 14-9-2007/21-9-2007 passed by the Commissioner of Central Excise, Mangalore, the appellants are required to pre-deposit the following amounts of duty. (a) Duty of Rs. 2,46,36,000/- (Central Excise Duty) (b) Duty of Rs. 2,71,69,000/- (Customs Duty) (c) Penalt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Carbon Dioxide and Ammonium Bicarbonate manufactured by the appellants are not fertilizers. Therefore, according to Revenue the entire raw Naphtha procured has not been intended for the manufacture of fertilizers. Theoretically they have calculated the raw Naphtha required for the manufacture of the Carbon Dioxide and Ammonium Bicarbonate and they had demanded duty on the same. Penalties have al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f fertilizers. The submission of the learned Advocate is that the entire Naphtha procured duty free has been used only for the intended purpose, which is manufacture of fertilizers. The separation of Carbon Dioxide is a technological necessity in the process. It is also stated that at the particular point of time the Carbon Dioxide has to be removed because it will be a poison in the system and th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he issue, we find that prima facie the appellant has a strong case. When Carbon Dioxide arises as a technological necessity, we cannot say that the appellant used raw Naphtha only to produce Carbon Dioxide, which in turn was used to produce Ammonium Bicarbonate, which is not a fertilizer. The appellants have shown that the entire Naphtha has been procured duty free has been used for the manufactur ..... X X X X Extracts X X X X X X X X Extracts X X X X
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