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TMI Blog1982 (2) TMI 305X X X X Extracts X X X X X X X X Extracts X X X X ..... generation of steam and those used in the manufacture of ammonia which is sold outside for use as chemical. The Collector has held in his orders that as steam is not used as feedstock, the quantity of furnace oil and low sulphur heavy stock used in the generation of steam could not get the benefit of concessional rate. He has also held that the quantity used during the trial run could not get the benefit of the concessional rate, as it could not be said that there was any manufacture of fertilizers. It has also been held that ammonia manufactured and then sold for use as chemicals could not also be accepted as in the nature of manufacture of fertilizers and therefore the furnace oil etc. used in its manufacture could not qualify for concess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e for the concessional rate of duty. 3. The appellants were heard in New Delhi on 22-2-1982 through their Advocate and Representatives. Advocate Shri J. Banerjee appeared for the hearing along with Shri G.K. Kuryan, Chief Engineer, and Shri J.N. Biswas, Assistant Finance Manager, F.C.I., Sindri. He pointed out that the orders of the Collector are defective, as different Notifications have been wrongly interpreted. He cited Notification Nos. 147/74 and 195/76 applicable to Central Excise Tariff Item No. 10 and Notification No. 350/77 applicable to Tariff Item No. 11A. Under the first Notification, furnace oil intended to be used as feedstock in the manufacture of fertilisers was completely exempted from Central Excise Duty subject to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ;So far as steam is concerned, he explained with the help of the Chief Engineer that the process of manufacture of fertilizers required generation of steam as an essential part in the manufacturing process and the steam itself has also to be mixed with hydrocarbons so as to obtain the required end-product. In this connection he made over the technical write-up explaining briefly the process of manufacture by the process of classification of the feedstock, purification, compression and conversion to ammonia and further admixture of ammonia with carbon dioxide and other chemicals for the manufacture of urea or ammonium sulphate. He explained that without steam in required quantities, it was not possible to obtain the required quantity of ammo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ually duplicated, but the manufactured products cannot be secured at commercial scale till the plant is established. Similarly, in the case of the appellants factory steam is an essential process material and the entire quantity of steam generated in the plant is used as an input in production. The technical write-up submitted by the appellants clearly indicated the position and the Board is satisfied that in the case of appellants the benefits of the notification would be available even in regard to the feedstock used in the generation of steam. 9. The Board is, however, unable to uphold the contentions of the appellants that ammonia sold for use as chemicals should also be treated as fertilizers and the feedstock used in the manufac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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