Central Excise - Levy of Central Excise duty on crystallizing coated ammonium nitrate and allowing of Modvat Credit of such duty - Clarification regarding

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..... 989 [From F. No. 105(6)89-CX.3] Government of India Ministry of Finance (Department of Revenue) Central Board of Excise & Customs, New Delhi Subject : Central Excise - Levy of Central Excise duty on crystallizing coated ammonium nitrate and allowing of Modvat Credit of such duty - Clarification regarding. In the context of the old CET, the CEGAT had decided in the case of CCE, Aurangabad v. .....

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..... CL, New Delhi. Although the said CEGAT order was passed in the context of the old CET it was equally relevant and applicable in the context of the new CET also because firstly, all Ammonium Nitrate under the new CET would be classifiable only under heading No. 31.02 of the new CET. This is amply clarified by Chapter Note 2(a)(ii) of Chapter 31 of the new CET which states that Ammonium Nitrate, whe .....

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..... Nitrate melt and no MODVAT credit of such duty, even if paid, should be allowed. 2. After the issue of these instructions, several representations have been received, stating that the said guidelines would be inapplicable to the process of conversion of Ammonium Nitrate melt into crystalline coated Ammonium Nitrate because this process deserves to be considered as a process of manufacture. The ma .....

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