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TMI Blog2002 (12) TMI 656X X X X Extracts X X X X X X X X Extracts X X X X ..... se of manufacture of their final products, namely, petroleum products, certain left over gases are turned as lean gases in which sulphur content is pre-dominant; that due to pollutant nature of sulphur the appellants are duty bound to recover the sulphur; that for the same purpose the gases are diverted to sulphur recovery plant where sulphur is obtained as a by-product; that they are availing Modvat Credit of the duty paid on the inputs namely, chemicals and packing materials under Rule 57A of the Central Excise Rules. 1944 during the relevant period; that chemicals are being used after separation of petroleum products and left over acidic gases from the crude oil; that for example dyes are used for colouring petroleum products and anti-fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1/28/2001-CX : dated 16.10.2001 land contended that the Commissioner has not specified any input in the impugned Order which has been used in the manufacturer of sulphur. Finally he submitted that sulphur was declared by them in their application for registration under Rule 174 of the Rules; that further they have classified declared sulphur as bye-product from time to time and the department had approved classification of sulphur under Chapter 25 of the Schedule to the Central Excise Tariff Act; that as such department was duly aware that sulphur is recovered incidental to the manufacture of final product namely petroleum products, and therefore, no suppression can be alleged against them; that accordingly extended period of limitation is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... large quantity of sulphurous gases are released due to basic sulphur compounds present in the crude oil. These sulphurous gases, called acidic/sour gases, cannot be burnt in the refinery due to their polluted nature. Thus sour gases are taken to the sulphur recovery unit where sulphur is recovered. From the process of manufacture it is apparent that when the crude oil is refined sour gases are obtained as a bye-product out of which in separate recovery plant, sulphur is recovered. It is not the case of the Revenue that any Modvatable input procured by the appellants has been used in or in relation to the manufactured of sulphur which in our view is nothing but a bye product. The learned Adjudicating Authority has confirmed the demand of du ..... X X X X Extracts X X X X X X X X Extracts X X X X
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