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TMI Blog1983 (1) TMI 255X X X X Extracts X X X X X X X X Extracts X X X X ..... E/76 dated 23-4-1976 both of the Appellate Collector of Central Excise, New Delhi. 2. The appellants are manufacturers of battery grade sulphuric acid in their factory. Demands were issued by the Superintendent of Central Excise, Panipat, one No. CE-20/Acid/73/2195 dated 24-8-1974 for the period from 1-9-1973 to 31-7-1974 for a sum of ₹ 10,243.35, a second Notice No. CE-20/Acid/73/2411 dated 12-9-1974 for the period from 9-6-1964 to 31-8-1973 for a sum of ₹ 72,851.36 and a third for the period 1-8-1974 to 31-5-1975 for a sum of ₹ 13,391.84. These sums were amended by the Asstt. Collector by two corrigenda both dated 21-6-1975 amending the amounts from ₹ 10,243.35 to ₹ 11,438.60 and from ₹ 72,851.36 to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Battery grade sulphuric acid plant is meant to convert SO3 gas into Battery grade sulphuric acid by further purification, and the purpose of glass tower is to eliminate the iron content in the sulphuric acid. Thus it would be seen that the battery grade sulphuric acid is a purified acid, and converted into special grade i.e., battery grade. In purified and made to special grade. Grade implies the degree of rank, proficiency, quality and value. All these expressions are related to function . Therefore, an acid though may not be 100% pure but if made to a special grade so that it is suitable for a particular use, falls outside the purview of tariff value and has to be assessed on its market value. Battery grade acid is that which can su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e sulphuric acid. In this, however, the Assistant Collector is in error because he does not stipulate that the gas that goes to the glass tower is an iron laden gas which has to be freed from iron. The fact of the matter is that the sulphuric acid formed in the glass tower will have less opportunity of coming into contact with iron and acquiring the element. This is not the case with the sulphuric acid formed in the mild steel sheet tower where the acid will acquire a certain amount of iron impurities in it. The process of manufacture discussed by the Assistant Collector shows not that the commercial grade acid formed in the M.S. sheet tower plant goes to the battery acid plant but that the two streams are independent of each other. The pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty had not submitted any classification list to the department and it had suppressed the information in order to evade appropriate Central Excise duty; he held there was an element of fraud in such suppression and so Rule 10 was not applicable. 4. The question therefore has to be considered whether the Central Excise authorities were aware of the nature of the acid said to have been described by the appellants as iron free sulphuric acid [the appellants have been describing the goods as battery grade acid in their gate passes and gate passes are available to the assessing officers]. The appellants are said to have even written letters in June, 1964 to the Inspector, Central Excise, Shahabad and Superintendent, Central Excise, Yamunanaga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sufficient description to enable correct assessments to be made. This being the case, we must hold the demands to be time-barred. 5. The notification 173/70-Central Excise does not specify the purification required of the acid nor does it state the nature of impurity the acid should contain to make it eligible for assessment under tariff value. Acids can contain various impurities ; while one kind of impurity may be tolerated for one purpose, it may not be so tolerated if the acid is to be used for some other purpose. But in actual life it is next to impossible to obtain a pure substance i.e., a substance totally free from all impurities. The best and purest gold has less than 100% purity. Whether the substance is a metal or a liquid o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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