9911796707
TMI Blog2008 (9) TMI 308X X X X Extracts X X X X X X X X Extracts X X X X ..... the Appellant Assessee and hence they are in Appeal, whereas for the subsequent period the lower appellate Authority has allowed the benefit to the Appellant Assessee and hence the Department is in Appeal. 3. Shri J.P. Khaitan, learned Sr. Advocate appearing on behalf of the Appellant Assessee states that the Appellants manufacture Caustic Soda lye which involves electrolysis of Sodium Chloride Brine. During this process wet chlorine gas gets generated as by-product. The wet chlorine gas is poisonous and the same is sent through pipeline to the Appellant's Chlorine Plant, where it is cooled and then filtered and dried for the removal of moistures and the other impurities. The gas is thereafter compressed and further filtered in glass wool ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the pressure in the storage tank become equal, the flow of liquid chlorine into the cylinders becomes impossible in absence of any difference in pressures. To avoid such a situation, the pressure inside the cylinders is reduced by way of degassing. The process continues till the required quantity of liquid chlorine is filled into the cylinders. The degassed chlorine vapour is contaminated because of its association with air and other impurities which also enter the cylinder in the course of filling and becomes sniff or waste gas which is neither usable nor marketable as such and since the same is highly toxic, the appellant transfers such gas to its Hypo-Plant situated within the factory premises where it is absorbed in lime solution f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in which alone it can be marketed, we are of the view that the difference in the quantity of liquid chlorine which ultimately becomes non-excisable sniff gas cannot be held to be chargeable to duty. It is no one's case that any quantity of liquid chlorine has been removed from the factory premises without payment of duty. No doubt liquid chlorine is a manufactured product and it is accounted for in the RG-1 Register. However, payment of excise duty is deferred till the excisable goods are removed from the factory. In this case liquid chlorine cannot be removed as such without taking recourse to the special filling process and putting the same in marketable cylinders/vessels. The loss of liquid chlorine which takes place while rendering liq ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
